Hi this is ZipLaw! Today we bring you the Must-Know M&A trends of 2024 so you can stand out in law firm applications and interviews.
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Here’s what we’re serving today:
- 😉 A bit of optimism?
- 📝 Regulation is coming
- 📜 NSIA Pivot
- 💸 Private Equity Boost
A bit of optimism?
In Short: Brace yourselves for a potential market shake-up in 2024. We're talking about a possible end to the standstill in business valuations, private equity firms eyeing exit strategies, and a resurgence in IPO activity.
What to Expect:
- Narrowing Valuation Gaps: Up to now the deal market has been on a bit of a stalemate as buyers and sellers struggle to agree on price. With interest rates stabilising, the mismatch in price expectations between sellers and buyers might diminish. This means more deals could be on the horizon as borrowing becomes cheaper and more attractive.
- Private Equity Shifts: Firms that have been holding onto investments due to low valuations might soon look for exit strategies. This could lead to a wave of mergers and acquisitions or even IPOs, as many funds approach maturity.
- IPO Market Revival: An increase in IPO activities is expected, especially in Europe. A long list of companies, bolstered by private equity and venture capital, are anticipated to make a move towards public markets.
- Potential for Distressed M&A Deals: The prolonged period of high interest rates and inflation might lead to more companies looking to restructure or sell parts of their business, creating opportunities for strategic acquisitions. Firms might find valuable investment opportunities in distressed assets, while others might need to revaluate their portfolios in light of market changes.