Globally, M&A activity is on the rise. However, the rates of growth are not uniform. The pace of activity varies according to industry and geography.
M&A is booming in certain sectors, including technology, energy, and healthcare. Other industries, such as education and financial services, have seen a less dramatic increase.
Many companies are seeking profitable growth and business transformation with strategic acquisitions. Particularly they are targeting companies in the service sector that provide digital solutions for customer engagement and business operations and also companies that can help them comply with environmental regulations or reduce emissions. They may also be looking to acquire manufacturing assets such as those for the production of EV batteries.
Global M&A activity slowed in first half of 2024, but could pick up again as financial sponsors 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, 2024’s initial nine months saw more deals worth $10 billion or more https://vdr-tips.blog/data-rooms-for-startups-the-essential-tool-for-navigating-investors-and-manda-deals/ than in any year prior to the pandemic.
The rapid pace of technological change continues to propel M&A, as businesses acquire new technologies that improve their products or allow them to expand into new markets. M&A in the industrial manufacturing sector is increasing as companies invest in AI and machine learning robotics, predictive robots, and smart factories in order to increase efficiency and productivity. The growth of e-commerce has resulted in M&A by logistics providers looking to acquire or create distribution networks. Some companies combine to expand or consolidate their product lines. Others join forces to save money or R&D synergies.