North American M&A transaction volume continued to increase quarter over quarter while aggregate deal value declined for the overall market. Strategic acquirers once again dominated the market with higher borrowing costs causing activity to favor volume over deal size.

With the market showing signs of a mild recovery after a challenging 2023, the anticipated rate cut by the Federal Reserve in September 2024 is expected to produce more sponsor-led acquisitions. Despite suppressed levels of sponsor-led activity, record amounts of dry powder are ready for deployment in the marketplace.

Rising transaction multiples, elevated levels of dry powder, and the expectation of declining interest rates indicate that the second half of 2024 will produce robust M&A activity.