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A renewed sense of optimism is developing in the M&A market. Buyer interest levels are higher than we have seen in a long time, both among strategics and private equity firms. For high-quality assets, e.g., those that have continued to perform well despite the difficult market conditions, we see particularly high demand and competition among biding parties, resulting in a material valuation premium for those assets relative to peers.
It is not uncommon for buyers with strong conviction to move quickly and outbid slower-moving parties, while a high proportion of strategics have mandated buy-side advisors to help them source and screen opportunities.
The momentum is underpinned by a belief that the difficult macro conditions of the last two years are coming to an end. This view is supported both by the cautious lowering of interest rates in major economies as well as by improving company KPIs. Technological innovation is also a major M&A driver. #element-67f3497c-7d8d-492a-bea1-96eb9bfda1da .colored-box-content { clear: both; float: left; width: 100%; -moz-box-sizing: border-box; -webkit-box-sizing: border-box; -ms-box-sizing: border-box; box-sizing: border-box; background-color: #f4f7f8; padding-top: 20px; padding-bottom: 20px; padding-left: 20px; padding-right: 20px; -webkit-border-top-left-radius: 0px; -moz-border-top-left-radius: 0px; border-top-left-radius: 0px; -webkit-border-top-right-radius: 0px; -moz-border-top-right-radius: 0px; border-top-right-radius: 0px; -webkit-border-bottom-left-radius: 0px; -moz-border-bottom-left-radius: 0px; border-bottom-left-radius: 0px;
