Globally, M&A activity is on the rise. However, the growth rates vary. It also varies by industry and region.
Certain sectors are experiencing an increase in M&A in particular, such as health, energy, and technology. Other industries, like financial services and education, have seen a more modest increase.
Many companies are pursuing business change and growth through strategic acquisitions. They are primarily looking for companies that offer digital solutions to engage customers and manage businesses, as well as companies which can assist them in complying with environmental regulations and reduce emissions. They might be interested in buying manufacturing assets, like the ones used to manufacture electric batteries.
Global M&A activity slowed down in the first half 2024 but could pick back up as financial sponsors deploy their capital and activist check Pricing Guide – Leading Virtual Data Room Providers investors continue insisting on a change in corporate behavior. The Americas was the largest M&A market followed by Asia and Europe. In terms of deal prices, the first nine months of 2024 saw more deals worth $10 billion or more than in any previous year.
The rapid pace of technological development continues to drive M&A as companies acquire new technologies that improve their products or allow them to expand into new markets. For example, M&A is accelerating in the manufacturing industry as companies invest in AI, machine learning, predictive robotics and smart factories to boost productivity and efficiency. The rapid growth of e-commerce has also led to M&A by logistics providers seeking to acquire or develop distribution networks. Some companies merge to consolidate or broaden their product lines, while others join forces to save money or R&D synergies.