Globally, M&A activity is on increasing. However, growth rates are not uniform. It also differs by industry and region.
Some sectors are seeing an explosion in M&A, including check my source technology, energy and healthcare. Some industries, such as education and financial services have seen a slight rise.
Many companies are trying to achieve profitable growth and business transformation through strategic acquisitions. Particularly they are targeting businesses in the service industry that offer digital solutions to customer engagement and business operations as well as those which can assist them in complying with environmental regulations or cut emissions. They may also be interested in acquiring manufacturing assets, such as the ones used to manufacture EV batteries.
Global M&A activity slowed during the first half of 2024, but could pick up again as financial sponsors make use of capital and activist investors continue to push for change at the corporate level. The Americas were the most popular M&A market, followed by Asia and Europe. In terms of deal values the first nine months of 2024 saw more deals worth $10 billion or more than any previous year.
M&A is accelerated by the rapid pace of technological changes as companies acquire new technologies which improve their products or allow them to enter a new market. For instance, M&A is accelerating in the manufacturing industry as companies invest in AI, machine learning, predictive robotics and smart factories to boost efficiency and productivity. Logistics providers have also been affected by the rise of ecommerce, which has led them to build or acquire distribution networks. Some companies merge in order to expand or consolidate their product lines. Others combine for cost-savings or R&D synergies.
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