Globally, M&A activity is on the rise. However, the growth rates vary. The amount of activity is also influenced by sector and geographic region.
M&A is booming in some industries, including technology, energy, and healthcare. Some industries, such as financial services and education have seen a modest increase.
Many companies are looking to achieve profitable growth and transformation of their businesses through strategic acquisitions. Particularly they are focusing on companies in the service industry that offer digital solutions for customer engagement and business operations and also companies who can check Pricing Guide – Leading Virtual Data Room Providers assist them in complying with environmental regulations or cut emissions. They might also be interested in purchasing manufacturing assets, like those used to produce electric batteries.
Global M&A activity slowed down in the first half 2024 but could pick up as financial sponsors invest their capital and activist investors keep calling for change at the corporate level. The Americas was the biggest M&A market followed by Asia and Europe. As for deal values, the first nine months of 2024 saw more deals of $10 billion or more than in any previous year.
M&A is accelerated by the speed at which technology changes and the acquisition of technologies that enhance products or allow them to enter new markets. For instance, M&A is accelerating in the industrial manufacturing sector as companies invest in AI, machine learning, predictive robotics and smart factories to enhance efficiency and productivity. Logistics providers are also affected by the expansion of ecommerce, which has led them to build or acquire distribution networks. Some companies join forces to consolidate or broaden their product offerings, while others join forces to save money or R&D synergies.