Globally, M&A activity is on the rise. However, the rates of growth differ. The pace of activity varies according to industry and geography.
Some sectors are seeing an explosion in M&A such as healthcare, energy, and technology. Other industries, including education and financial services, have seen a more modest increase.
Many companies are pursuing profitable growth and business transformation through strategic acquisitions. They are most looking for companies that offer digital solutions for customers to interact and manage businesses, as well companies who can help them comply with environmental regulations or to reduce emissions. They may also want to acquire manufacturing assets, such as those used for production of electric vehicles.
Global M&A activity slowed down in the first half of 2024 but it could increase when financial sponsors are able to deploy 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, the first nine months of 2024 saw more deals worth $10 billion or more than any previous year.
M&A is enhanced by the rapid pace of technology changes as companies acquire technology that enhance their products or allow them to enter a new markets. For instance, M&A is accelerating in the manufacturing industry as companies invest in AI, machine learning, predictive robotics and smart factories to increase efficiency and productivity. Logistics providers are also affected by the rise of e-commerce to buy or build distribution networks. Some companies join forces to consolidate or broaden their product offerings, while others collaborate to cut costs or R&D synergies.
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