Globally, M&A activity is on increasing. However, the growth rates differ. The level of activity varies by the industry and geographical region.
Certain sectors are experiencing a boom in M&A, including technology, energy and healthcare. Other sectors, such as financial services and education, have seen a more modest increase.
Many companies are looking to achieve profitable growth and business transformation with strategic acquisitions. Particularly they are targeting companies in the service sector that offer digital solutions for customer engagement and business operations, as well as companies which can assist them in complying with environmental regulations and reduce emissions. They could also look to purchase manufacturing assets, such as those used for production of electric vehicles.
Global M&A activity slowed down in the first half 2024 but could pick up as financial sponsors use their capital and activist investors keep insisting on a change in corporate behavior. The Americas was the largest M&A market, followed by Asia and Europe. In terms of the value of deals, 2024’s first nine months were dominated by deals worth $10 billion or higher than any year prior to the outbreak.
The rapid pace of technological change continues to propel M&A as companies acquire technology that will improve their products or allow them to expand into new markets. For example, M&A is accelerating in the industrial manufacturing sector as companies invest in AI machine learning, predictive robotics, and smart factories to boost efficiency and productivity. The rise of e-commerce has also triggered M&A by logistics companies looking VDR Pricing to acquire or develop distribution networks. Certain companies join forces to expand or consolidate their product lines. Some combine to make savings or R&D synergies.