M&A activity continues to rise worldwide, although the pace of growth isn’t constant. It also varies by industry and region.
Some sectors are seeing a boom in M&A which includes healthcare, energy, and technology. Other sectors, such as education and financial services, have seen a smaller growth.
Many companies are looking to achieve profitable growth and transformation of their businesses through strategic acquisitions. They are most looking for companies that offer digital solutions that help customers and run businesses, as are companies that can help them meet environmental regulations or reduce emissions. They may be interested in buying manufacturing assets, such as the ones used to create EV batteries.
Global M&A activity slowed down in the first half of 2024, but it is expected to pick up when financial sponsors are able to deploy capital and activist investors continue to push for changes in corporate behavior. The Americas was the largest M&A market, followed by Asia and Europe. In terms of deal values, the first nine months of 2024 saw more deals worth $10 billion or more than in any previous year.
The rapid pace of technological change continues to propel M&A as companies acquire technologies that can improve products or enable them to enter new markets. M&A in the manufacturing industry is increasing as companies invest in AI and machine learning, predictive robots, and smart factories in order to increase efficiency and productivity. Logistics providers are also affected by the rise of ecommerce to build or acquire distribution networks. Some companies have merged in order to expand or consolidate their product lines. Others join for cost-savings or R&D synergies.