I was honored to be a featured contributor in Litera’s recently released 2024 M&A Activity Report.
Instead of a “tip” this week, I’m including a few excerpts from the report.
- Deal volume was (clearly) down in 2023 and that this trend continued into the first months of 2024. However, I am “cautiously optimistic” that M&A activity will pick up throughout the balance of 2024. A few factors will likely drive this: PE funds have significant dry powder that needs to be put to use. Many PE funds are holding assets/investments that have been in their portfolios for five or more years, and those portfolio companies will need to transact in one way or another. Generally, too many M&A players have been on the sidelines for too long.
- One of the most significant developments I’ve seen in the M&A arena over the past 12 months is that it is now taking longer than ever to get deals done, and my clients on both the buy-side and sell-side are bracing themselves for longer timelines from letter of intent to closing.
- This is a fascinating time to be involved in M&A from a technology perspective. According to a Bain report I recently read, generative AI is only being utilized in 16% of M&A deal processes today, but that number is expected to reach 80% over the next three years. Early adopters seem to be utilizing generative AI primarily to identify targets and conduct document contract review.
Our weekly newsletter is published to share updates and insights from part of our team of Private Equity and M&A legal talent
- Now that we are a quarter into 2024, what is the outlook for the rest of the year shaping up to be for startup formation, early-stage and venture investments, and M&A? Join us for a panel discussion for founders and private investors on the outlook for our amazing ecosystem.
- Wednesday, April 17, 2024 at Nixon Peabody's San Francisco office.
- Join us for a complimentary Private Equity and M&A networking and roundtable discussion on the broader market concerns impacting the food & beverage sector.
- Wednesday, April 24, 2024 at Nixon Peabody's Boston office.
- Positive economic signals in 2023 indicate a comeback in IPOs in 2024.
- US VC fundraising is expected to increase, making it stronger than 2023 and comparable with 2020 figures.
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