Will M&A gain more traction in 2024? Q4'23 M&A trends in IM

In 2023, industrial manufacturing (IM) M&A activity experienced a downturn, constrained by high interest rates, difficulties in accessing capital, geopolitical tensions, and economic uncertainty. Deal value plummeted 36 percent to $253.8 billion. However, the market shows signs of emerging optimism. 

Our recent survey of 200 leading C-suite executives revealed that 65 percent of them expect dealmaking growth in 2024, with IM being one of the top three targeted areas for transactions. This optimism aligns with the Federal Reserve's interest rate shift which could lower costs of borrowing, encourage private equity investments, and drive an active M&A market. 

Despite the slowdown in traditional M&A activity, joint ventures and alliance formations have provided a safe haven to IM companies for sustained traction in industry-transforming deals, while hedging on risks. As the economic landscape clears and interest rates decline, corporate investors and private equity firms are eager to deploy their available capital, targeting industries like aerospace, automotive, and engineering.  

To gain more insights on the emerging M&A trends in IM and the key considerations for driving growth in this market, download our paper, “Will M&A gain more traction in 2024? M&A trends in industrial manufacturing.”