As macroeconomic headwinds steady and financial markets continue to reopen, the outlook for private equity (PE) M&A in 2024 looks promising.
In 2023, PE deal volumes and values remained sharply down from 2021, due to elevated interest rates and market uncertainty. Dealmakers faced significant difficulty in securing financing, and a disconnect persisted between buyers' and sellers' valuation expectations.
However, with the long-predicted recession not materializing and inflation rates gradually decreasing, dealmakers now anticipate rate cuts that will boost PE investing.In a recent KPMG survey,80% of respondents indicated they were looking to complete a transaction worth more than $1 billion, with many targeting the second half of 2024.
Despite the newfound optimism, a few headwinds remain. Tighter regulatory oversight and upcoming elections this year are expected to bring new levels of uncertainty in deal closures. Successful PE players will be those who combine innovative dealmaking with a relentless focus on operational excellence.
Download our paper, 2024 M&A outlook for private equity, to learn where and how PE leaders plan to make deals to drive value creation. For our 2024 M&A outlook for corporate deal makers, click here.
