Globally, M&A activity is on the rise. However, growth rates vary. The pace of activity varies according to the industry and by geography.
M&A is on the rise in certain sectors, including technology, energy and https://vdr-tips.blog/what-is-capital-raising healthcare. Some industries, such as financial services and education have seen a modest increase.
Many companies are looking to achieve profitable expansion and business transformation via strategic acquisitions. In particular they are targeting businesses in the service sector that provide digital solutions for customer engagement and business operations and also companies which can assist them in complying with environmental regulations or reduce emissions. They might be interested in buying manufacturing assets, like the ones used to create EV batteries.
Global M&A activity slowed down in the first half of 2024 but it could increase as financial sponsors make use of capital and activist investors continue to push for corporate change. The Americas remained the top M&A market, followed by Asia and Europe. In terms of deal value, 2024’s first nine months were dominated by deals valued at $10 billion or higher than any year prior to the pandemic.
M&A is increased by the speed at which technology changes, as companies acquire technologies which improve their products or allow them to enter new markets. M&A in the manufacturing industry is growing as companies invest in AI and machine learning, predictive robots, and smart factories to increase productivity and efficiency. The rise of e-commerce has also led to M&A by logistics providers seeking to acquire or build distribution networks. Some companies join forces to expand or consolidate their product offerings, while others collaborate to cut costs or R&D synergies.