Top Trends in Mergers and Acquisitions for 2024

Gartner released the top M&A trends for 2024, highlighting strategies for navigating this evolving landscape. The four crucial trends for 2024 M&A are as follows:

1️⃣ Macroeconomic Ambiguity Unlocks Technology M&A Opportunities:
With global M&A down 50% from its 2021 peak, macroeconomic ambiguity will persist in 2024. Startups unable to raise funding during this time will look to be acquired, and probably at a lower price. Gartner suggests well-capitalized enterprises capitalize on this opportunity by acquiring smaller tech-focused businesses that are facing funding challenges.

2️⃣ AI Use Will Improve the M&A Process:
AI is primed to revolutionize M&A processes by enhancing speed and efficiency. Gartner recommends applying AI in internal M&A processes, particularly in contract analytics, to streamline and improve LOI negotiation, due diligence, definitive agreements, and TSA negotiation.

3️⃣ AI Strategy Will Require New Approaches for Acquiring AI-Based Businesses:
While not yet trending, Gartner anticipates a surge in AI-based business acquisitions in 2024. Enterprises lacking the expertise or time to build AI capabilities on their own are encouraged to consider M&A as a strategic move.

4️⃣ Increased Regulatory Scrutiny Will Hinder Large M&A Activity:
Increased regulatory scrutiny, especially on anti-competition and national security grounds, is on the rise and will likely impact large M&A deals in 2024. The silver lining here is that this increases the appeal of smaller deals. Gartner advises enterprises to proactively engage with regulators and consider a larger number of smaller diverse deals to create a competitive advantage.

Read the full report, "Top Trends in M&A for 2024" here - https://www.gartner.com/en/newsroom/press-releases/2023-11-15-gartner-announces-top-trends-in-mergers-and-acquisitions-for-2024