After a sluggish 2023, mergers and acquisitions activity has so far exhibited a cautious but optimistic upturn in the first quarter of 2024. While the year began with the echoes of previous anxieties—global economic uncertainty, inflation concerns, high-interest rates that increase the cost of capital, and lingering pandemic effects—signs of a thaw are emerging. This momentum is fueled by a confluence of factors, with private equity continuing to play a prominent role and strategic acquisitions taking center stage.

Worldwide M&A deal value in 2023 totaled $3.2 trillion, which represented a 15% decrease in comparison to 2022 (which also experienced a steep decline in M&A activity). Total spending in the tech sector dipped below $300 billion, which was a decade low. Corporations and investment firms adopted conservative capital deployment strategies, leading to a decline in blockbuster deals and a shift towards smaller, more thoughtful acquisitions.