M&A activity continues to increase globally, even though the pace of growth isn’t the same. It also differs by industry and by region.
M&A is booming in some industries, including energy, technology, and healthcare. Other industries, like financial services and education have seen a tinier growth.
Many companies are looking to pursue business transformation and profitable growth via strategic acquisitions. They are most interested in companies that provide digital solutions to engage customers and run businesses, as well companies that can help them meet environmental regulations or to reduce emissions. They might also be interested in acquiring manufacturing assets, such as those used to produce electric batteries.
Global M&A activity slowed down in the first half of 2024 but it could pick up when financial sponsors make use of their capital, and activist investors continue insisting on a change in corporate behavior. The Americas were the most popular M&A market, followed by Asia and Europe. In terms of deal values the first nine months of 2024 saw more deals worth $10 billion or more than in any previous year.
M&A is increased due to the rapid pace of technology changes and the acquisition of technologies that improve products or allow them to enter a new market. M&A in the industrial manufacturing sector is growing as companies invest in AI and machine learning, predictive robots, and smart factories to increase efficiency and productivity. The rapid growth of e-commerce has also led to M&A by logistics companies looking to acquire or build distribution networks. Some companies combine to expand or consolidate their product lines. Others join for cost-savings or R&D synergies.
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