As we prepare for 2024, what can we expect in Canadian
M&A in the year ahead?
At the start of 2023, we faced a confluence of variables we
viewed as somewhat unprecedented, and the result proved to be one
of the slower M&A markets in recent memory. As the calendar
turns to 2024, there are numerous grounds to be cautiously
optimistic about a healthy rebound.
Macroeconomic Conditions
On the positive front, 2023 saw inflation stabilize and recede,
although it remains higher than central banks and the market would
prefer. The steady rise of interest rates over 2023 has also
flatlined, and the question has evolved from how high they will
climb to how long they will stay there. Outside of an unexpected
recession they are not anticipated to drop in the near-term and the
market is adjusting to this new, but hopefully temporary, normal.
Indeed, consensus appears to be growing that rates could begin to
ratchet down as early as Q3 2024. This would be a powerful
stimulant
