Globally, M&A activity is on the rise. However, growth rates are not uniform. The pace of activity varies according to sector and geographic region.
M&A is on the rise in certain sectors, including technology, energy and healthcare. Other sectors, such as financial services and education, have seen a tinier increase.
Many companies are pursuing profitable expansion and business transformation via strategic acquisitions. They are particularly interested in companies that provide digital solutions to engage customers and manage businesses, as are companies who can help them comply with environmental regulations or reduce emission. They may be interested in buying manufacturing assets, such as those used to make EV batteries.
Global M&A activity slowed down in the first half 2024 but could pick up as financial sponsors invest their capital and activist investors continue pushing for corporate change. The Americas remain the top M&A market followed by Asia and Europe. In terms of deal value, 2024’s initial nine months saw more deals worth $10 billion or more than any year prior to the outbreak.
The https://vdr-tips.blog rapid pace of technological advancement continues to drive M&A, as businesses acquire technology that will improve their products or help them to enter 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 to improve productivity and efficiency. The rapid growth of e-commerce has also triggered M&A by logistics companies looking to acquire or build distribution networks. Some companies join forces to expand or consolidate their product lines, while others combine for cost savings or R&D synergies.