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2023/09/11
Market Insight by Xavier Ledru - The Ever-Changing Shape of the M&A Market

Changing economic landscape and higher interest rates 

 

The world has drastically changed recently, and not just for the short term. Central banks have been raising rates, at the fastest pace since the 1990s and to date, most policymakers do not expect a return to 2% inflation before 2025. 

 

According to Fitch’s latest global economic outlook, the direction of interest rates in emerging and developed markets is beginning to seriously diverge, with the majority of emerging market central banks keeping their rates unchanged or beginning to cut them, while major developed market central banks continue to raise them in the face of persistently high core inflation. 

 

In the ever-evolving landscape of mergers and acquisitions (M&A), current economic factors significantly influence the strategies of market participants. 

 

Higher interest rates are currently casting a shadow over the industry, causing global M&A deal makers to navigate uncharted waters. Recalibrating financial dynamics has more than ever become an imperative for success.