The Federal Reserve's higher-for-longer interest rate stance won't stop deals from getting done, according to EY. A new EY forecast predicts corporate M&A activity will increase 20% in 2024, while private equity deals will rise 16%.

EY Strategy and Transactions, Americas Vice Chair Mitch Berlin says there are a few reasons why corporate dealmaking is making a comeback. Berlin says companies "need to transact to transform," meaning companies need to make acquisitions to stay ahead of competition, gain market share, and for product expansion, for example. He also highlights that in the tech sector, companies are making acquisitions to get ahead with AI.

Berlin notes that given how differently the two candidates view M&A, the 2024 presidential election could factor into some deal decisions. Regulators in the Biden administration have been more active than in the past. Berlin says that's not stopping deals from happening, but it is making dealmakers "more cautious in how they are doing deals."

Watch the video above to hear what Berlin says about deals in the energy space.

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This post was written by Stephanie Mikulich.