News and developments
Firm shares insights on what lies ahead for New Zealand’s M&A market in 2024
The forecast charts the industry’s deal-making journey in 2023 and offers insights into the evolving landscape and emerging themes. The team predicts strengthening deal activity in 2024 as buyers come to terms with the ‘new normal’ and sellers begin to re-set their expectations.
The team notes that deal-making was full of turbulence throughout 2023 with several key factors contributing to the bumpy ride:
- Macroeconomic factors: 2023 was a busy year around the world. Deal-makers were operating in a landscape impacted by the lingering effects of a global pandemic, geopolitical tensions, economic uncertainties, and the dynamics of a changing government landscape. Stubbornly high interest and inflation rates further complicated matters.
- Cautious buyers: This new, uncertain landscape caused buyers to become much more cautious. Many chose not to participate at all. For those that did, due diligence processes became more prolonged and boards and investment committees, wary of downside risks, demanded more robust protection.
- Disconnect in expectations: Significant gaps emerged between buyer and seller expectations. This led to more, often tense, negotiations, which in turn blew out deal timelines. The shift from a seller-friendly to a buyer-friendly environment was rapid and profound. Buyers and sellers spent much of 2023 coming to terms with the new normal.