Despite spite hitting its lowest level in a decade last year, global mergers and acquisitions (M&A) deal activity is beginning to show signs of recovery, beckoning dealmakers from the sidelines.
In 2023, dealmakers grappled with what has been called the worst market for M&A since the period following the global financial crisis. Last year, M&A volume was at around 55,000 deals, and deal values settled at a low point of $2.5 trillion, according to PwC, which specializes in assurance, tax and advisory services. This was a far cry from 2021, when global M&A volume was at a whopping $5.9 trillion — the largest M&A year in history — beating out the previous record set in 2007, according to Goldman Sachs.
That’s because 2023 (and 2022 before it) was a completely different animal than 2021. Rising interest rates affected prices and led to higher financing costs; and transaction volume decreased, largely as a function of a widening bid-ask spread betw