KPMG – M&A Outlook Corporate, 2024

Senior executives at major U.S. corporations are optimistic about a rebound in M&A deal activity in 2024, following two years of decline. According to a survey by KPMG LLP, two-thirds of corporate executives expect M&A activity to surpass 2023 levels, with over three-quarters planning to do at least one deal this year. The top reasons cited for making deals include long-term strategic value and growth, acquiring assets to accelerate transformation, and focusing on core business areas such as tech companies. The bid/ask disconnect between buyers and sellers, as well as stricter regulatory oversight, are key factors impacting corporate M&A. Despite concerns about potential tax policy changes, less than 5 percent of corporate leaders believe it will limit M&A activity, with many seeing it as an opportunity to increase deal-making appetite before the presidential election. Additionally, 92 percent of companies are utilizing generative AI in their M&A processes or plan to do so in 2024. PE investors are expected to reenter the market in the second half of the year, providing corporates with an opportunity to acquire assets before their return.