M&A activity continues to grow globally, even though the rate of growth isn’t the same. The activity varies also by the industry and geographical region.
M&A is booming in some industries, including energy, technology, and healthcare. Other industries, like financial services and education, have seen a more modest growth.
Many companies are seeking profitable growth and business transformation through strategic acquisitions. In particular they are focusing on companies in the service sector that offer digital solutions for customer engagement and business operations as well as those that can help them to comply with environmental regulations or cut emissions. They https://vdr-tips.blog/pricing-guide-leading-virtual-data-room-providers/ might also be interested to acquire manufacturing assets, such as those used to make EV batteries.
Global M&A activity slowed down in the first half 2024 but could pick back up as financial sponsors invest their capital and activist investors continue calling for change at the corporate level. The Americas remained the top M&A market, followed by Asia and Europe. As for deal values the first nine months of 2024 saw deals worth $10 billion or more than any previous year.
M&A is increased by the rapid pace of technology change as companies acquire technology which improve their products or allow them to enter 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 affected by the rapid growth of ecommerce, which has led them to buy or build distribution networks. Some companies join forces to consolidate or broaden their product lines, whereas others collaborate to cut costs or R&D synergies.