2024年5月15日 |
11:00 上午 - 12:00 下午 Eastern Daylight Time |
10:00 上午 - 11:00 上午 Central Daylight Time |
08:00 上午 - 09:00 上午 Pacific Daylight Time |
This presentation will highlight recent trends in mergers and acquisitions (M&A) and debt markets for technology businesses, including generative artificial intelligence (AI) in M&A, antitrust, national security, representations and warranties (R&W) claims, shareholder activism, and economic and covenant trends in debt financings.
Global M&A Top Trends In 2024
M&A dealmakers have been on a wild ride as of late: from the pandemic-fueled rout in 2020 to 2021’s record-breaking recovery to a steep decline in 2023, the decade’s global M&A market has offered something of a masterclass in volatility. While global M&A activity, in terms of value, fell to its lowest level in 10 years in 2023, deal count did not drop as steeply as deal value, reflecting a focus on smaller deals.
Rising interest rates, ongoing economic uncertainty, regulatory headwinds, and geopolitical tensions were major factors behind the downturn in global M&A. The M&A market showed signs of recovery in Q4 2023, with technology M&A being a top choice for dealmakers, accounting for 27% of deal value.
Key Drivers of M&A in 2024
Generative AI
Antitrust
National Security
Representations and Warranties Insurance
Shareholder Activism
Looking Forward
Debt Market Trends in 2024
Private credit fundraising has slowed over the last few months, though investors remain optimistic about the asset class and expect to allocate more capital to those funds next year. According to Preqin, global private debt fundraising declined in the first quarter of 2024 to $31.6 billion, a 25% drop from a year earlier.
Defaults rise, but so does optimism. Despite an increase in defaults, the outlook for leveraged credit is more optimistic at this point than early in 2023 when inflation, rising interest rates, and a looming maturity wall provided causes for concern. Economic growth has surprised to the upside, and primary market accessibility continues to normalize. Sentiment has improved significantly.
Leveraged buyouts remain muted as costs rise. The first quarter of 2024 saw a significant drop in new money leveraged loan volume, reaching its lowest level in years. This decline can be attributed to subdued M&A activity, resulting from soaring financing costs and persisting valuation disagreements between buyers and sellers.
Interest rates are (maybe) on the move—whether up, down, or sideways remains to be seen.