Good news as we head into the second half of 2024! After feeling the burden of a challenging macro-economic environment earlier in the year, the signs of an M&A rebound are evident – improved economic conditions, sector development, and increased market confidence and activity.
First, economic conditions are expected to improve. Across the board, experts are predicting interest rates to come down. Interest rate cuts reduce the cost of borrowing, making M&A activity easier for buyers. When this occurs, the market can expect a sharp increase in deal volume from the pent-up demand over the slower M&A months. Not to mention, both buyers and sellers become more optimistic in favorable market conditions which stimulates the M&A market.
Next, sector-specific needs and developments will help drive M&A activity. Artificial Intelligence (AI), specifically, has started to have a major impact on society. It poses many opportunities for businesses. From new revenue streams to more efficient business models, the possibilities are abundant. To stay competitive, we expect to see many businesses looking to invest in this space. So, with the additional capital that will be available as the microenvironment loosens, we expect to see lots of activity in this space.
Finally, corporate level activity is on the rise. With strong financials and improving market conditions, CEOs are more confident in their companies’ 2024 performance. This will likely drive them to M&A participation. We can expect them to be most active in the Energy, Technology and Healthcare spaces.
Overall, improved economic conditions, sector development and increased corporate activity will lead to a rebound in the M&A markets. Aberdeen Advisors’ experienced team remains confident and optimistic the second half of 2024 will continue to gain momentum and strengthen the M&A environment. We pride ourselves on a successful track record of shepherding business owners through the sales process to ensure a successful outcome. We welcome confidential conversations to help you determine if now is the right time for you to explore exit options.