Global Mergers and Acquisitions – 2024
M&A activity continues to grow across the globe, but the pace of growth isn’t constant. It also varies according to industry and region.
M&A is booming in certain industries, including energy, technology, and healthcare. Certain industries, such as financial services and education have seen a modest increase.
Many companies are seeking business transformation and growth that is profitable through strategic acquisitions. Particularly they are targeting companies in the service sector that provide digital solutions for customer engagement and business operations, as well as companies that can help them comply with environmental regulations or reduce emissions. They might also be interested in acquiring manufacturing assets, such as the ones used to create electric batteries.
Global M&A activity slowed in the first half of 2024 but it could increase as financial sponsors deploy capital and activist investors continue to push for change at the corporate level. The Americas was the largest M&A market, followed by Asia and Europe. In terms of deal value, 2024’s first nine months were dominated by deals valued at $10 billion or more than any year prior to the pandemic.
The rapid pace of technological advancement continues to drive M&A, as businesses acquire technology that improve their products or allow them to expand into new markets. M&A in the manufacturing industry is increasing as companies invest in AI and machine learning, predictive robots, and smart factories to improve productivity and efficiency. The growing popularity of e-commerce also triggered M&A by logistics providers looking to acquire or establish distribution networks. Some companies combine to consolidate or broaden their product lines, whereas others join forces to save money or R&D synergies.
