M&A Risk Outlook For 2024

This article is part of our M&A outlook for 2024.

Amid the softening of M&A activity in both Canada and the U.S. and alongside ongoing macro-level challenges, we are seeing bright spots of opportunity as dealmakers take creative approaches to executing transactions. Below is our assessment of the state of play for M&A deal activity—as well as emerging areas of risk for 2024.

Sourcing deals in a challenging environment

The current environment, while marked by economic uncertainty, inflationary concerns and geopolitical tensions, is nonetheless fostering opportunities for pension funds and other well capitalized investors who do not need to rely as heavily on leverage to get deals through. We also see sponsors finding new approaches to deploying capital, including through larger equity checks and equity backstops, smaller platform deals and add-on acquisitions.