Global Mergers and Acquisitions – 2024
Globally, M&A activity is on the rise. However, the growth rates are uneven. It also varies based on industry and by region.
M&A is booming in certain sectors, including technology, energy and healthcare. Other sectors, such as financial services and education have seen a less dramatic increase.
Many companies are trying to achieve profitable growth and business transformation with strategic acquisitions. In particular, they are targeting companies in the service sector which offer digital solutions for customer engagement and business operations and also companies that can help them comply with environmental regulations and reduce emissions. They might also be interested in acquiring manufacturing assets, such as the ones used to manufacture electric batteries.
Global M&A activity slowed down in the first half 2024 but could increase as financial sponsors invest their capital and activist investors keep demanding change in corporate practices. The Americas was the biggest M&A market followed by Asia and Europe. In terms of deal value, 2024’s opening nine months saw more deals valued at $10 billion or higher than any year prior to the outbreak.
M&A is accelerated by the rapid pace of technology changes as companies acquire new technologies that improve products or allow them to enter a new market. M&A in the manufacturing industry is increasing as companies invest in AI and machine learning, predictive robots, and smart factories to increase productivity and efficiency. The rapid growth of e-commerce has also triggered M&A by logistics companies looking to acquire or establish distribution networks. Some companies combine to expand or consolidate their product lines. Others join forces to save money or R&D synergies.
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