M&A activity continues to increase worldwide, although the rate of growth isn’t constant. The level of activity varies by the industry and by geography.
M&A is booming in certain sectors, including energy, technology and healthcare. Certain industries, like financial services and education have seen a modest increase.
Many companies are seeking profitable growth and business transformation through strategic acquisitions. Particularly they are focusing on companies in the service industry that offer digital solutions to customer engagement and business operations, as well as companies which can assist them in complying with environmental regulations and reduce emissions. They may also be interested to acquire manufacturing assets, such as those used to produce electric batteries.
Global M&A activity slowed in the first half of 2024 but it could pick up as financial sponsors deploy their capital VDR Pricing and activist investors continue 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 initial nine months saw more deals worth $10 billion or more than any year prior to the pandemic.
M&A is accelerated by the speed at which technology changes, as companies acquire technologies that enhance their products or allow them to enter a new markets. For instance, M&A is accelerating in the industrial manufacturing sector as companies invest in AI machine learning, predictive robotics, and smart factories to enhance productivity and efficiency. Logistics providers are also influenced by the growth of ecommerce to purchase or establish distribution networks. Some companies combine to expand or consolidate their product lines, whereas others join forces to save money or R&D synergies.