Mergers and acquisitions (M&A) are about confidence. And confidence in Q1 in the U.S. was partly driven by expectations of up to six interest rate cuts, but the Fed has held its rate target at 23-year record highs, and expectations have come down to potentially two or even zero rate cuts by yearend. This has resulted in a slight pullback after an initial leap into dealmaking in 2024.
Global M&A activity is up 17% year on year, according to Mergermarket data. The first part of the year roared to a start with a series of larger-cap listed deals as strategic investors put their share capital to work in a bid to boost languishing share prices as they search for growth.
