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Business M&A Activity, Expect 50% Surge in 2024 with $2 Trillion Dry Powder Ready for Deployment

After a significant decline in deal-making volume in 2023, I anticipate a significant rebound in business mergers and acquisitions (M&A) activity for 2024. My prediction is backed by a combination of factors, including:

  • Pent-up demand: Many businesses had deals put on hold in 2023 due to factors like inflation, high interest rates, and increased regulatory scrutiny. With these headwinds potentially easing in 2024, companies are expected to revisit these deals and pursue new opportunities as inflation continues to drop and the economy remains healthy.

  • Abundant capital: Worldwide private equity firms now hold a significant amount of unspent capital that I calculate around $2 Trillion unspent, known as "dry powder," which they are eager to deploy. This excess capital is a major driver of M&A activity.

  • Favorable interest rates: A potential decrease in interest rates in 2024 could make financing M&A deals more attractive, further fueling deal activity.

  • Strategic considerations: Companies may pursue M&A to expand their market share, enter new markets, or acquire new technologies.

For 2024, after studying the data, I anticipate industry sectors like energy, technology, artificial intelligence (AI), quantum computing, eCommerce and healthcare to be particularly active in terms of M&A, mergers and acquisitions on Wall Street with spillover worldwide.

A recent Deloitte survey also supports this optimistic outlook. The survey revealed that:

  • 83% of corporate and private equity leaders expect an increase in M&A activity in 2024.

  • Nearly the same number of respondents anticipate an increase in their own organizations' deal-making activity.

These findings align with the broader sentiment among corporate leaders, who are reportedly more willing to engage in deals this year, as reported by Investopedia.

While the overall M&A landscape appears promising for 2024, it is crucial to remember that the actual number of deals and their value can be influenced by various unforeseen circumstances. However, the current indications suggest a potential year of 2024 with growth in the M&A business market and perhaps, the Federal Reserve drops the rate a little.

James Dean, author / eCommerce guru is located in Northeast Ohio with over 35 years of experience in Business Development. He is a graduate of Boston University. J Dean leads a team helping entrepreneurs, corporations and non-profits to succeed in a changing world. Questions contact 440-596-3380 or Email   


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