Globally, M&A activity is on the rise. However, growth rates are not uniform. The pace of activity varies according to industry and geography.
M&A is booming in certain areas, like technology, energy and healthcare. Other industries, like financial services and education, have seen a more modest growth.
Many companies are looking to pursue business change and growth through strategic acquisitions. They are primarily interested in companies that provide digital solutions that help customers and run businesses, as well as companies that can assist them with environmental regulations and reduce emissions. They could also look to acquire manufacturing assets such as those used for EV battery production.
Global M&A activity slowed down in the first half of 2024, but it is likely to pick back up when financial sponsors are able to deploy capital and activist investors continue to push for change at the corporate level. The Americas were the most popular M&A market followed by Asia and Europe. In terms of deal value 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 change as companies acquire new technologies that enhance products or allow them to enter a 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 improve efficiency and productivity. The rapid growth of e-commerce has resulted in M&A by logistics providers seeking to acquire or develop distribution networks. Some companies combine to expand or consolidate their product lines, whereas others collaborate to cut costs or R&D synergies.