M&A activity continues to grow globally, even though the rate of growth is uneven. It also varies based on industry and by region.
M&A is booming in some areas, like energy, technology, and healthcare. Other sectors, such as financial and education services, have seen a tinier increase.
Many companies are pursuing profitable growth and transformation of their businesses through strategic acquisitions. Particularly they are focusing on companies 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 be interested in acquiring manufacturing assets, like those used to make electric batteries.
Global M&A activity slowed in the first half of 2024 but it is likely to pick back up as financial sponsors deploy 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 were dominated by deals valued at $10 billion straight from the source or more than in any year prior to the pandemic.
M&A is intensified by the rapid pace of technological change and the acquisition of technologies that enhance their products or allow them to enter new markets. M&A in the industrial manufacturing sector is growing as companies invest in AI and machine learning, predictive robots, and smart factories to improve productivity and efficiency. Logistics providers have also been affected by the expansion of e-commerce to build or acquire distribution networks. Some companies combine to expand or consolidate their product lines. Others combine for cost-savings or R&D synergies.