The deal market in 2024 is likely to recover from the issues that were faced in 2023. The market for deals in 2023 is likely to experience a revival from the challenges of 2023.

However, a number of things http://thisdataroom.com/how-virtual-data-room-vdr-benefit-ma-deals/ will continue to hamper deal-making. The slowdown in M&A is largely due capital constraints. Rising interest rates have shifted the economic landscape and have made it less attractive to invest in growth through acquisitions or new investments. This is especially relevant for the US that accounts for a substantial part of the global deal value as well as two-thirds of the top hundred deals in 2021 involving an US company or the target.

A second issue is that the increased scrutiny of regulatory agencies is limiting M&A. Concerns over antitrust, national security, and other factors are putting more scrutiny on larger deals and limiting the potential for industry consolidation. The trend is expected continue until 2024.

Third, the focus of generative AI (GIA) will result in more M&A to develop capabilities. M&A will be used by companies who do not have the time or expertise to develop GIA capabilities internally. In addition, the environmental, social, and governance (ESG) agenda continues to gain momentum among CEOs. They will increasingly seek to boost ESG initiatives by buying companies that will help them reach their growth, earnings, and valuation goals.