M&A activity continues to grow globally, even though the rate of growth isn’t the same. It also varies by industry and region.
Certain sectors are experiencing a boom in M&A which includes healthcare, energy, and technology. Other industries, such as financial services and education, have seen a less dramatic growth.
Many companies are seeking profitable expansion and business transformation via strategic acquisitions. In particular they are targeting businesses in the service industry that offer digital solutions for customer engagement and business operations and also companies that can help them comply with environmental regulations or cut emissions. They may also seek to acquire manufacturing assets such as those for EV battery production.
Global M&A activity slowed in first Capital raising process half of 2024, but could pick up again when financial sponsors are able to deploy capital and activist investors continue to push for changes in corporate behavior. The Americas remained the top M&A market followed by Asia and Europe. As for deal values the first nine months of 2024 saw the most deals worth $10 billion or more than in any previous year.
M&A is intensified due to the rapid pace of technology changes as companies acquire new technologies that enhance their 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 robotics, predictive robots, as well as smart factories in order to improve efficiency and productivity. Logistics companies have also been influenced by the growth of ecommerce to buy or build distribution networks. Some companies join forces to consolidate or broaden their product lines, whereas others join forces to save money or R&D synergies.
