M&A activity continues to increase worldwide, although the rate of growth is not uniform. The activity varies also by the industry and by geography.
M&A is booming in certain areas, like energy, technology, and healthcare. Other industries, such as education and financial services, have seen a smaller growth.
Many companies are seeking business change and growth through strategic acquisitions. They are most interested in companies that provide digital solutions to connect with customers and run businesses, and also companies who can help them comply with environmental regulations or to reduce emissions. They may also be looking to purchase manufacturing assets, like those used in the production of EV batteries.
Global M&A activity slowed in the first half of 2024, but it is expected to pick up as financial sponsors make use of capital and activist investors continue to push for change at the corporate level. The Americas was the largest M&A market, followed by Asia and Europe. As for deal values the first nine months of 2024 saw deals worth $10 billion or more than in any previous year.
M&A is increased by the speed at which technology changes as companies acquire new technologies that improve products or allow them to enter 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. Logistics providers have also been affected by the rise of ecommerce, which has led them to build or acquire distribution networks. Certain companies join to consolidate or expand their product offerings, while others combine for cost savings or R&D synergies.
