December 29, 2023: The mergers and acquisitions (M&A) sector experienced a significant downturn over the last year, reaching its lowest activity level in a decade. However, with potential interest-rate reductions on the horizon, experts are optimistic about a rebound in 2024, as highlighted by The Wall Street Journal through various graphs summarizing the 2023 M&A landscape.
The decrease in M&A transactions in 2023 compared to the previous year is largely attributed to the difficulty in reconciling the price expectations of buyers and sellers. Buyers tend to offer lower prices, while sellers demand higher ones, leading to a substantial disparity that often derails negotiations.