77% of respondents senior investment bankers surveyed expect either significant or at least marginal growth in revenue in 2024, compared to 27% of respondents in 2023, a survey has shown.
The survey by Acuity Knowledge Partners highlighted significant fluctuations in deal-making over the past three years, with record highs in 2021 and early 2022 followed by a downturn in late 2022 and throughout 2023 due to geopolitical tensions and economic uncertainty. However, according to the survey, the outlook for 2024 is more optimistic.
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According to the findings, the primary drivers of this growth include reasonable valuations, ample dry powder, strong corporate balance sheets, and a potential decline in interest rates.
The merger and acquisition market is expected to favour buyers, with 48% of respondents holding this view, while 38% believe it will benefit both buyers and sellers. It is anticipated to continue as a primary revenue contributor, accompanied by heightened activity in capital markets. The tech, media and telecom sectors are also projected to lead revenue recovery, followed by power, utilities, infrastructure, and the leisure, retail and consumer sectors.
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Operational challenges remain a concern, with 63% of respondents anticipating issues related to employee bandwidth. The survey has revealed that over 50% are considering offshoring and focusing on technology-driven efficiencies to address these challenges.
