Macro Bites: M&A deal activity in 2024’s nuanced macroeconomic environment

CEOs will encounter a mixed macroeconomic environment when making M&A decisions in 2024. Cost fatigue, still-high interest rates and some signs of a slowing labor market could weigh on economic activity. However, expected Fed interest rate cuts and moderating inflation may set the stage for increased M&A in 2024. EY-Parthenon Chief Economist Gregory Daco, EY Americas Strategy and Transactions Vice Chair Mitch Berlin and EY Strategy and Transactions Partner Katie Johnson discuss macroeconomic trends and their expected impact on M&A deal activity in 2024, including which sectors are likely to see the most activity.

Key takeaways

  • Coming off a stronger-than-expected 2023, the 2024 macroeconomic environment presents uncertainty, but also M&A opportunity. 
  • CEOs are likely to pursue more M&A as interest rates start to ease, with expectations of less expensive refinancing later. 
  • Tech, oil and gas, and life sciences are all likely to be strong M&A sectors
  • Explore the EY-Parthenon Deal Barometer for more on our 2024 M&A outlook

Host and featured guests

katie johnson

Katie Johnson
EY Americas Consumer Transactions Leader

mitch berlin

Mitch Berlin
EY Americas Vice Chair, Strategy and Transactions

gregory daco

Gregory Daco
EY-Parthenon Chief Economist, Strategy and Transactions, Ernst & Young LLP

Watch more episodes of Macro Bites

Explore our Macro Bites video series for real-time economic insights from industry leaders at EY.