Globally, M&A activity is on increasing. However, the growth rates differ. The amount of activity is also influenced by sector and geographic region.
Some sectors are seeing a boom in M&A which includes health, energy, and technology. Other industries, like education and financial services, have seen a smaller increase.
Many companies are looking to achieve profitable growth and business transformation through strategic acquisitions. In particular, they are targeting companies in the service industry that provide digital solutions for customer engagement and business operations, as well as companies that can help them to comply with environmental regulations or decrease emissions. They might be interested in buying manufacturing assets, such as the ones used to manufacture EV batteries.
Global M&A activity slowed in the first half 2024 but could pick back up as financial sponsors invest their capital, and activist investors continue demanding change in corporate practices. The Americas were the most popular M&A market followed by Asia and Europe. In terms of deal value, 2024’s first nine months were dominated by deals worth $10 billion or higher than in any year prior to the outbreak.
M&A is enhanced due to the speed at which technology change as companies acquire new technologies that enhance products or allow them to enter a new market. For instance, M&A is accelerating in the manufacturing industry as companies invest in AI, machine learning, predictive robotics and smart factories to enhance productivity and efficiency. The growing popularity of vdr-tips.blog e-commerce also triggered M&A by logistics companies looking to acquire or establish distribution networks. Certain companies join to consolidate or broaden their product ranges, while others combine for cost savings or R&D synergies.