M&A activity continues to increase globally, even though the rate of growth isn’t constant. It also differs by industry and region.
Certain sectors are experiencing a boom in M&A, including healthcare, energy, and technology. Certain industries, including financial services and education have seen a slight increase.
Many companies are pursuing profitable growth and business transformation with strategic acquisitions. They are primarily looking for companies that offer digital solutions to engage customers and manage businesses, as well as companies that can assist them with environmental regulations or https://vdr-tips.blog reduce emission. They might also be interested in purchasing manufacturing assets, like those used to make electric batteries.
Global M&A activity slowed during the first half of 2024, but it could increase as financial sponsors invest capital and activist investors continue to push for corporate change. The Americas was the biggest M&A market followed by Asia and Europe. As for deal values, the first nine months of 2024 saw the most deals worth $10 billion or more than the previous year.
The rapid pace of technological advancement continues to propel M&A, as businesses acquire technology that will improve products or enable them to enter new markets. For example, M&A is accelerating in the industrial manufacturing sector as companies invest in AI machine learning, predictive robotics, and smart factories to improve efficiency and productivity. Logistics companies have also been affected by the rise of ecommerce, which has led them to purchase or establish distribution networks. Certain companies join forces to expand or consolidate their product lines. Some combine to make savings or R&D synergies.