A major trend holding back Wall Street could reverse itself in 2024

Dealmaking is the bread and butter of Wall Street – but by some accounts this has been the worst year for mergers and acquisitions in about a decade. Initial public offerings have also suffered.

Dealmaking is the bread and butter of Wall Street — but by some accounts this has been the worst year for mergers and acquisitions in about a decade. Initial public offerings have also suffered along the way, with very few companies making their stock market debuts. In 2023, global IPO volumes fell 8%, according to EY data. Proceeds from those IPOs dropped by 33% compared to the year prior. Meanwhile, the value of deals around the globe is pacing to fall below $3 trillion this year for the first time since 2013, according to Bloomberg data. That means Wall Street bonuses might be slimmer this year, sure. But it also has larger implications for Main Street. IPOs and M&A help move money from large, established companies to innovative and growing companies — they support job creation, economic expansion and technological advancement. Still, some experts say that 2024 is looking better for dealmaking.