Globally, M&A activity is on increasing. However, the growth rates differ. The pace of activity varies according to the industry and geographical region.
Certain sectors are experiencing an increase in M&A in particular, such as technology, energy and healthcare. Other industries, including financial and education services, have seen a more modest increase.
Many companies are looking to pursue business change and growth through strategic acquisitions. They are particularly interested in companies that provide digital solutions to connect with customers and run businesses, as are companies who can help them comply with environmental regulations or reduce emissions. They may also be interested to acquire manufacturing assets, such as those used to produce electric batteries.
Global M&A activity slowed down in the first half 2024 but it could pick up as financial sponsors use their capital, and activist investors continue demanding change in corporate practices. The Americas was the biggest M&A market followed by Asia and Europe. In terms of deal value, 2024’s initial nine months were dominated by deals worth $10 billion or more than in any year prior to the pandemic.
The rapid pace of technological change continues to drive M&A as companies acquire technologies that can enhance their products or allow them to expand into 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 original site vdr-tips.blog/pricing-guide-leading-virtual-data-room-providers/ to increase productivity and efficiency. The rise of e-commerce has resulted in M&A by logistics providers looking to acquire or build distribution networks. Some companies have merged in order to expand or consolidate their product lines. Some combine to make savings or R&D synergies.