M&A activity continues to grow across the globe, but the pace of growth is not uniform. The activity varies also by industry and geography.
M&A is booming in some areas, like energy, technology and healthcare. Certain industries, including education and financial services have seen a slight rise.
Many companies are trying to achieve business transformation and profitable growth through strategic acquisitions. They are primarily looking for companies that offer digital solutions that help customers and manage businesses, and also companies which can assist them in complying with environmental regulations or reduce emission. They could also look to acquire manufacturing assets such as those for the production of EV batteries.
Global M&A activity slowed in first half of 2024, but it is likely to pick back up when financial sponsors are able to deploy capital and activist investors continue to push for change in corporate practices. The Americas was the biggest M&A market followed by Asia and Europe. In terms of deal value the first nine months of 2024 saw more https://vdr-tips.blog deals of $10 billion or more than any previous year.
The rapid pace of technological change continues to drive M&A, as businesses acquire technology that enhance their products or allow them to enter 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. Logistics companies have also been influenced by the growth of e-commerce to acquire or build distribution network. Certain companies join forces to expand or consolidate their product lines. Others combine for cost-savings or R&D synergies.