M&A activity continues to grow globally, though the pace of growth isn’t constant. It also varies by industry and region.
M&A is on the rise in certain sectors, including energy, technology, and healthcare. Certain industries, including education and financial services have seen a modest increase.
Many companies are looking to achieve profitable expansion and business transformation via strategic acquisitions. They are primarily looking for companies that offer digital solutions for customers to interact and manage businesses, as well as companies that can assist them with environmental regulations or to reduce emissions. They could also look to acquire manufacturing assets, like those used for EV battery production.
Global M&A activity slowed in first half of 2024 but could pick up again as financial sponsors make use of capital and activist investors continue to push for corporate change. 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 worth $10 billion or more than in any year prior to the outbreak.
M&A is intensified by the rapid pace of technological change and the acquisition https://vdr-tips.blog/transaction-rooms-mobile-apps-main-functions of technologies that enhance products or allow them to enter new market. For example, M&A is accelerating in the manufacturing industry as companies invest in AI machine learning, predictive robotics, and smart factories to increase productivity and efficiency. Logistics companies have also been affected by the expansion of e-commerce to purchase or establish distribution networks. Certain companies join forces to expand or consolidate their product lines. Others join forces to save money or R&D synergies.