Global Mergers and Acquisitions – 2024
Globally, M&A activity is on increasing. However, the growth rates are uneven. It also varies according to industry and by region.
M&A is booming in certain sectors, such as technology, energy, and healthcare. Certain industries, including financial services and education have seen a modest increase.
Many companies are seeking business transformation and profitable growth through strategic acquisitions. They are most looking for companies that offer digital solutions for customers to interact and manage businesses, and also companies that can assist them with environmental regulations or reduce emission. They may also want to purchase manufacturing assets, such as those used for production of electric vehicles.
Global M&A activity slowed during the first half of 2024 but it could increase as financial sponsors make use of capital and activist investors continue to push for corporate change. The Americas continued to be the top M&A market followed by Asia and Europe. In terms of deal value, 2024’s opening nine months were dominated by deals worth $10 billion or more than any year prior to the outbreak.
The rapid pace of technological innovation continues to drive M&A as companies acquire technologies that can enhance their products or allow them to enter new markets. M&A in the manufacturing industry is increasing as companies invest in AI and machine learning as well as predictive robots and smart factories to improve productivity and efficiency. Logistics companies have also been affected by the rise of e-commerce to acquire or build distribution network. Certain companies join to consolidate or expand their product ranges, while others join forces to save money or R&D synergies.