Dealmakers Are Liking the M&A Vibes Right Now

Last year was the worst for mergers and acquisitions in a decade, with deal volumes down about a quarter, to $2.8 trillion, according to data compiled by Bloomberg. Buyout firms were reluctant to put money to work, with scarce financing and sellers’ pricey expectations. And large corporations shied from big-ticket deals, for fear of upsetting shareholders and antitrust officials. Yet M&A practitioners—ever the optimists!—say things may be looking up as inflation eases and interest rates fall. Here’s a vibes outlook.

While the M&A market has been slow, it’s stable, with the monthly deal volume hovering at about $250 billion for the past 18 months. Observers expect the steady pace to continue through 2024’s first half. “We don’t see the market dropping, volume-wise, further from here,” says David DeNunzio, co-head of global M&A at Wells Fargo & Co. Kevin Brunner, co-head of global M&A at Bank of America Corp., says health care, tech and industrials in particular will see activity increase.