Key findings

Sentiment around M&A activity in 2024 is mixed. Looking at their own investment outlook, over half of respondents (59 percent) expect their appetite for M&A to increase compared to 2023, including around a quarter (23 percent) who say it will increase significantly. 

According to our respondent group, the most commonly used forms of financing will be cash reserves (90 percent) and private debt (91 percent). Moreover, almost a third (31 percent) identify private debt as likely to be the single most important form of M&A financing in 2024. 

Technology is expected to see the highest growth in inbound cross-border M&A in 2024, with 71 percent of respondents citing it in their top-three sectors. AI has become the hottest topic in tech. A third of respondents are looking to acquire an AI business, a proportion that rises to 54 percent among PE funds.

Overall, the type of policy and regulation that respondents believe will most inhibit M&A in 2024 is antitrust regulation (33 percent of top-two votes), although this is skewed largely towards advanced and mature deal makers such as the US (88 percent) and Europe (70 percent).

Finding itself in a curious position, ESG regulations are coming out as a key obstacle, with nearly a quarter giving this as a top factor most likely to supress M&A activity in the year ahead. On the other hand, ESG guidance is in the enviable position of being highlighted as a key driver for M&A. 

With the arrival of the new year, market sentiment has grown more optimistic. Pent-up demand, significant amounts of PE dry powder, increased availability of private debt, falling inflation levels, and the expectation of lower or at least steady borrowing rates, all point to a more active global M&A market in 2024.Ayse Yuksel, Global Head of Corporate, M&A and securities