Posted 1/30/2024, 5:00:00 AM
M&A Market Slumps 15% to Decade Low in 2023, Poised to Rebound in 2024 as Backlog Clears
- Total M&A market dropped 15% to $3.2 trillion in 2023, the lowest level in a decade, due to high interest rates, regulatory scrutiny, and valuation gaps between buyers and sellers
- Backlog of deals from 2023 expected to drive more M&A activity in 2024 as sellers become motivated and interest rates stabilize
- Frequent acquirers continue doing deals even during market downturns and stand to benefit most from the impending rebound
- Regulatory approval processes for contested deals now taking 12 months on average, over 3 times longer than typical deals
- Early adopters of AI in M&A focusing on process efficiencies like idea generation and data review, with 85% reporting it meets or exceeds expectations