The M&A market was markedly slower in 2023. U.S. and global total deal value fell 11% and 18%, respectively, compared to 2022, and 49% and 48%, respectively, compared to 2021. While 2021 was a record year for M&A, the drop in 2023 activity was still stark. Similarly, the number of U.S. and global deals fell 18% and 16%, respectively, from 2022 and 29% and 25%, respectively, from 2021. While many forecast that M&A activity will improve in 2024 in light of the stabilization of interest rates and declining inflation, the market continues to face challenges, including increased regulatory scrutiny of deals, geopolitical tensions and upcoming U.S. elections.
