check Pricing Guide – Leading Virtual Data Room Providers
M&A activity continues to rise worldwide, although the rate of growth is uneven. The level of activity varies by sector and geographic region.
M&A is on the rise in certain areas, like technology, energy and healthcare. Other sectors, such as financial services and education, have seen a smaller growth.
Many companies are looking to achieve profitable growth and business transformation with strategic acquisitions. They are most looking for companies that offer digital solutions to connect with customers and run businesses, as well as companies that can assist them with environmental regulations or reduce emission. They could also look to purchase manufacturing assets, like those used for the production of EV batteries.
Global M&A activity slowed down in the first half of 2024 but could pick up when financial sponsors make use of their capital and activist investors keep insisting on a change in corporate behavior. 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 of $10 billion or more than the previous year.
M&A is intensified by the rapid pace of technology changes as companies acquire new technologies that improve products or allow them to enter a new market. M&A in the manufacturing industry is increasing as companies invest in AI and machine learning robotics, predictive robots, and smart factories in order to improve productivity and efficiency. The rise of e-commerce has resulted in M&A by logistics companies seeking to acquire or establish distribution networks. Some companies merge to consolidate or broaden their product lines, whereas others collaborate to cut costs or R&D synergies.