M&A activity continues to increase globally, though the pace of growth is not uniform. The activity varies also by industry and geography.
M&A is booming in some industries, including energy, technology, and healthcare. Other industries, including education and financial services, have seen a tinier growth.
Many companies are pursuing profitable expansion and business transformation via strategic acquisitions. In particular they are targeting companies in the service sector that offer digital solutions to customer engagement and business operations and also companies which can assist them in complying with environmental regulations and reduce emissions. They may also seek to acquire manufacturing assets, such as those for production of electric vehicles.
Global M&A activity slowed down in the first half of 2024, but it is expected to pick up as financial sponsors invest capital and activist investors continue to push for change at the corporate level. The Americas was the biggest M&A market, followed by Asia and Europe. As for deal values, the first nine months of 2024 saw more deals of $10 billion or more than the previous year.
The rapid pace of technological innovation continues to drive M&A as companies acquire technologies that can improve products or enable them to expand into new markets. For instance, M&A is accelerating in the industrial manufacturing view website vdr-tips.blog/data-rooms-for-startups-the-essential-tool-for-navigating-investors-and-manda-deals/ sector as companies invest in AI, machine learning, predictive robotics, and smart factories to enhance efficiency and productivity. Logistics providers are also influenced by the growth of ecommerce to build or acquire distribution networks. Some companies merge to expand or consolidate their product lines, while others combine for cost savings or R&D synergies.