After two years of decline, the mergers and acquisitions (M&A) market is preparing for growth. According to the study, the number of corporate transactions worth at least $100 million will increase by 21% in 2024, and by 18% in 2025. Although this growth is impressive, it will still not reach the record levels of 2021. The reduction in interest rates, which is expected by the decision of the Federal Reserve System, may become an additional incentive for M&A, making raising financing more affordable. The active development of artificial intelligence (AI) also continues to stimulate mergers and acquisitions, especially in the technology sector. The technology sector is leading the current M&A growth, as noted by Mitch Berlin, vice chairman of EY Americas. Companies are afraid to miss the opportunity to take advantage of the AI boom, which leads to active mergers and acquisitions. In the United States, the volume of M&A in the first half of 2023 reached $1.1 trillion, which is 26% higher than in the same period last year. The number of transactions increased by 23% to 948.
TAUTAN CEPAT