The mergers and acquisitions (M&A) market has been on a wild ride over the past three years. Following a down year for activity in 2023, green shoots are beginning to sprout and dealmakers are regrouping.

Amid a backdrop of easing economic and financing conditions combined with central banks looking to cut interest rates as inflation subsides, we spoke with 300 M&A executives for our third annual survey delving into dealmaking mindset around the world. In this latest study, we set out to determine how sentiment is faring at what feels like a possible economic inflection point. Dealmakers’ outlook on prescient topics such as artificial intelligence (AI) and how perceptions of sustainability are developing in the face of political pushback were also among the key subjects of conversation in this research.

Key findings:

• Asia’s ascendance. 50% of respondents expect the level of M&A to increase at least somewhat over the next 12 months. Indeed, more than two-thirds of respondents based in APAC expect the level of M&A activity there to rise over the next 12 months, including 25% who say M&A levels will increase significantly.
• Financing efforts. 71% believe financing conditions will be more challenging over the next 12 months. Moreover, just under a third (31%) saying financing will be the most difficult part of the M&A process, even as M&A deal volumes recover.
• Spirit of sustainability. 84% are forecasting a rise in regulation around environmental, social and corporate governance (ESG) and sustainability standards over the next year.
• Digital disruption. 24% of respondents believe developments in data analytics will be highly disruptive to dealmaking over the next 12 months. Similarly, most respondents (53%) report having had to deal with greater concerns surrounding security/cybersecurity in M&A deal processes over the past 12 months.

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