Global Mergers and Acquisitions – 2024
Globally, M&A activity is on the rise. However, the growth rates are not uniform. It also varies based on industry and region.
Some sectors are seeing an explosion in M&A which includes the fields of energy, technology and healthcare. Other industries, like financial services and education have seen a less dramatic increase.
Many companies are seeking profitable expansion and business transformation via strategic acquisitions. They are most interested in companies that provide digital solutions that help customers and manage businesses, as well as companies that can assist them with environmental regulations and reduce emissions. They may also want to purchase manufacturing assets, such as those used for the production of EV batteries.
Global M&A activity slowed down in the first half of 2024 but could pick up as financial sponsors deploy their capital and activist investors continue demanding change in corporate practices. The Americas was the largest M&A market followed by Asia and Europe. In terms of deal prices, the first nine months of 2024 saw more deals of $10 billion or more than any previous year.
The rapid pace of technological development continues to propel M&A as companies acquire technology that enhance their products or allow them to expand into new markets. M&A in the industrial manufacturing sector is growing as companies invest in AI and machine learning robotics, predictive robots, and smart factories in order to increase efficiency and productivity. The rapid growth of e-commerce has also triggered M&A by logistics companies looking to acquire or create distribution networks. Some companies have merged in order to expand or consolidate their product lines. Others combine for cost-savings or R&D synergies.