Morgan Stanley: Cyclical and structural rebound in M&A is coming
Morgan Stanley analysts said in a note Tuesday that a cyclical and structural rebound in mergers & acquisitions (M&A) is coming.
The firm, which surveyed 150 industry teams across Morgan Stanley Research, said its Financials sector equity analysts expect global M&A volumes to rise 50% versus 2023.
This comes «as leading indicators flash green, banks point to deal pipelines building, and headwinds to corporate confidence ease,» the bank wrote. «The structural case is driven by dry powder, private markets, regional shifts and new innovations.»
Health Care, Real Estate, Staples and Technology are the sectors that stand out from Morgan Stanley's analyst survey. They also note the strong case for M&A within private markets, given incentives to act.
When it comes to regions, Europe and North America are the major areas with the most positive expected skew of activity, according to the bank. However, they note that conditions in Australia, India, Korea and ASEAN are also favorable.
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