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Reduced interest rates make it easier for firms to buy other companies. That’s because acquiring firms can borrow the money needed to finance mergers and acquisitions (M&A) deals much more cheaply when rates are low. With the Federal Reserve indicating earlier this year that it’s poised to cut its benchmark interest rate three times in 2024, rates are likely headed lower. As a result, the pace of M&A activity is likely to rise in the second half of 2024.

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