Globally, M&A activity is on the rise. However, growth rates differ. The level of activity varies by industry and geography.
Some sectors are seeing an explosion in M&A, including health, energy, and technology. Other industries, such as education and financial services, have seen a more modest growth.
Many companies are seeking profitable growth and business transformation with strategic acquisitions. They are particularly looking for companies that offer digital solutions that help customers and manage businesses, and also companies that can help them meet environmental regulations or to reduce emissions. They may also be looking to acquire manufacturing assets like those used in production of electric vehicles.
Global M&A activity slowed in the first quarter of 2024 but it could pick up as financial sponsors use their capital, and activist investors continue insisting on a change in corporate behavior. The Americas remain the top M&A market followed by Asia and Europe. In terms of deal value, the first nine months of 2024 saw more deals of $10 billion or more than the previous year.
M&A is intensified due to the rapid pace of technology changes as companies acquire technology that enhance products or allow them to enter a new markets. For instance, M&A is accelerating in the manufacturing industry as companies invest in AI machine learning, predictive robotics, and smart factories to increase efficiency and productivity. The rise of e-commerce has resulted in M&A by logistics companies looking to acquire or develop distribution he has a good point networks. Certain companies join forces to expand or consolidate their product lines. Others join forces to save money or R&D synergies.