A Changing Landscape: Anticipated Trends in the 2024 M&A Market
In this short video from our international partners at IMAP, Ken Wasik, Managing Director and Head of Capstone’s Consumer Investment Banking team, discusses emerging trends in consumer spending and offers projections on 2024 M&A activity in North America.
Full video transcript
This is an interesting time for the US consumer.
They’re coming off of unparalleled spending power, really built up by the combination of covid, strong employment, and just a very vibrant economy.
That’s pretty much petering out in the economy right now.
We’re seeing declining volumes. We’re seeing spending really shifting from higher priced items down to lower priced items.
The most interesting question out there is what happens with the consumer in 2024?
Do they continue spending and we see an upward drive, or are we going to see them continue to peter off and the economy slowly coming down with them?
Very interesting time in spending.
Another strong trend we’re following in the US economy in mergers and acquisitions is really the private equity buyer.
Traditionally, private equity forms one of the largest purchasing powers in the U.S.
We’ve seen them for the last year really being on the sideline for the most part, due to three different factors.
Number one is, all things being equal, private equity would rather not buy into a down cycle.
Number two is the cause of debt really has risen in the U.S., making acquisitions that much more costly.
And number three, commercial banks really have been pulling back on what they’ll lend out in the marketplace for acquisitions.
So, when you put those three together, you have a very tough market for private equity.
What we are predicting is in 2024, in the first quarter, this amazing pent-up demand from private equity is going to be unleashed in the US market.
It really is going to be a fantastic time to be selling your company in the first quarter of 2024.
Dive Deeper into the Data
For more on the information we shared in this video and our 2024 M&A forecast, access our Global M&A Trends Survey Report (2023-2024).
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