Global mergers and acquisitions my latest blog post vdr-tips.blog/how-to-manage-granular-permissions-for-individual-users-in-vdr/ are complicated and nuanced procedures that involve a variety of parties and prone to dangers. But they also have the potential to transform businesses and boost their growth.

The global M&A industry experienced a 10-year low in 2023, as investors became more concerned about the effect of rising rates, geopolitical tensions, and other factors. (See Chart 1). Nevertheless, some experts expect that activity to increase in 2024 as a portion of these headwinds diminish.

This optimism is due to the fact that there will be a backlog of assets that are available for sale in 2024. In recent times, a lot of private equity (PE) portfolio companies haven't sold owing to falling valuations. This creates opportunities for strategic buyers to purchase undervalued assets.

The conclusion of the cycle of interest rate hikes and a rebound on the stock market will increase the availability of financing with debt for acquisitions. This will reduce the costs of transactions and accelerate deal closing. M&A can also be used by more companies to lessen geopolitical risks and expand into new markets, industries or revenue streams.

In the second quarter of 2023, numerous deals that were structured were concluded. These included the sale of minority stakes and earnouts, which allow the buyer to pay for the entire cost of the deal when certain operational or financial milestones are met following the closing. This trend could continue as buyers attempt to align their incentives in a more difficult environment and close the gap between their valuations.