Oil Updates – crude falls on weak China data but set for first monthly gain since Sept

Oil Updates – crude falls on weak China data but set for first monthly gain since Sept
Oil Updates – crude falls on weak China data but set for first monthly gain since Sept

Thank you for reading the news about Oil Updates – crude falls on weak China data but set for first monthly gain since Sept and now with the details

Jeddah - Yasmine El Tohamy - RIYADH: The global merger and acquisition market witnessed a 15 percent drop year-on-year to $3.2 trillion in 2023, marking its lowest level in a decade, according to recent findings.

Dealmakers grappled with several obstacles, including high interest rates, increased regulatory scrutiny, and mixed macroeconomic signals, forcing them to be more selective in their pursuit of deals, Bain & Co.’s annual report stated. 

It highlighted that the gap between valuations was one of the most significant challenges. Additionally, overall strategic deal multiples hit a 15-year low at 10.1 times.

“The drop in deal multiples led to a wait-and-see atmosphere in 2023, with many sellers hesitant to come to the table at a market bottom,” said Les Baird, partner and head of Bain & Co.’s global M&A and divestitures practice.

A decline in tech M&A played a pivotal role with tech deal values dropping by approximately 45 percent.

Furthermore, median valuations plummeted from 25 times in 2021 to 13 times in 2023. However, the energy and healthcare sectors had a strong year, driven by sector-specific dynamics and big-ticket deals.

The research document further highlighted that mega deals were mostly made in the second half of 2023, signaling a potential shift in the outlook of dealmakers. 

Despite the decline in deal counts, companies maintained high levels of proactive deal screening and due diligence.

“History shows that downturns and times of disruption always produce newer, stronger competitors that used the turbulence to make market gains,” said Suzanne Kumar, Bain & Co.’s global practice vice president for M&A and divestitures.

The report also highlights an evolving regulatory climate, with at least $361 billion in announced deals facing challenges from regulators worldwide in the past two years. 

The average time to reach a regulatory outcome for scrutinized deals is now 12 months, adding complexity to deal planning, it stated.

Looking ahead, the findings pinpoint that generative artificial intelligence is expected to play a more significant role in dealmaking. 

In a survey of more than 300 M&A practitioners, Bain & Co. reports that only 16 percent currently use generative AI for deal processes, 80 percent anticipate adopting it within the next three years. 

Early users have found the technology to be efficient in generating ideas and reviewing data in the diligence phase, with 85 percent reporting that it met or exceeded their expectations. 

However, practitioners also recognized challenges related to data accuracy, privacy, and cybersecurity.

Additionally, the report delves into industries, highlighting that healthcare and life sciences are expected to remain active, driven by high levels of cash reserves and executive confidence. 

Energy and natural resources companies will take a more targeted approach to their energy transition acquisitions.

The space industry also closed multibillion-dollar deals in 2023 and is anticipated to continue to grow.

These were the details of the news Oil Updates – crude falls on weak China data but set for first monthly gain since Sept for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

PREV Inter-Arab trade at $700bn: Union of Arab Chambers
NEXT Ministry of Economy and Planning signs MoU with Saudi National Institute of Health

Author Information

I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community. Address: 2077 Sharon Lane Mishawaka, IN 46544, USA Phone: (+1) 574-255-1083 Email: [email protected]