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Laxman Pai, Opalesque Asia: The global management consulting firm Bain & Company predicts that overall deal value will reach $3.5 trillion by the end of 2024, up 15% year over year and consistent with mid-2010s levels.
Global M&A deal volume is up 7% year over year, reversing a two-year decline, the research report noted.
"The year 2024 will go down into the history books as a good year for M&A advisors and dealmakers, with both deal volume and value ending the year higher than the previous year," Bain & Company said. The year has been marked by careful adaption as dealmakers accommodate the new realities of higher interest rates and intense regulatory scrutiny.
As per the report, the narrative varies by category of dealmakers. As interest rates moved slightly lower, private equity and venture capital regained ground, with private equity deal value up 29% and venture capital up 30% year over year.
Corporate M&A, less influenced by small movements in the cost of debt, is on track to end the year 12% above 2023, with steady growth across all regions.
Bain's survey of more than 300 M&A executives found the primary drag on M&A activity remains the buyer-seller valuation expectations gap. A key contributing factor is the distance between historically low strategic M&A valuations (10.4x EBITDA/EV) and high public market valuations (16.6x for S&P 500).
As challenges and litigation extended deal close timelines and impacted close rates in 2024, nea...................... To view our full article Click here
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