Worldwide M&A Value up 16 percent – Deals Number Fall 20 percent
Worldwide M&A activity in the Global M&A Advisory Review totaled US$2.3 trillion during the first nine months of 2024, an increase of 16% compared to year-ago levels and strongest opening nine-month period for deal making since 2022. The third quarter of 2024 increased 14% compared to the second quarter of the year. By number of worldwide deals, over 35,500 deals were announced during the first nine months of 2024, a decrease of 20% compared to year ago levels and a eight-year low.
US TARGET M&A ACCOUNTS FOR 48% OF DEAL MAKING, A FIVE-YEAR HIGH
M&A activity for US targets totaled US$1.1 trillion during the first nine months of 2024, an increase of 18% compared to the level of activity seen during the first nine months of 2023 and the strongest first nine-month period for US deal making in two years. US deal making accounted for 48% of overall worldwide M&A during the first nine months, up from 47% a year ago, and the largest percentage for US deal making since the first nine months of 2019.
EUROPEAN M&A UP 30% TO TWO-YEAR HIGH; ASIA PACIFIC DECLINES 8%
European target M&A totaled US$481.3 billion during the first nine months of 2024, an increase of 30% compared to 2023 levels and a two-year high. Asia Pacific deal making totaled US$415.6 billion during the first nine months, an 8% decrease and the slowest period since 2013.
MEGA DEALS OVER US$10 BILLION UP 34%; DEALS UNDER US$500 MILLION DOWN 9%
Twenty-six deals greater than US$10 billion totaled US$515.2 billion during the first nine months of 2024, an increase of 34% compared to 2023 levels and marking the strongest opening period for mega deals, by value, since 2022. The value of worldwide M&A below US$500 million totaled US$551.6 billion during the first nine months of 2024, a decrease of 9%, by value and a 23% decrease, by number of deals, compared to 2023 levels.
TECHNOLOGY, ENERGY & POWER AND FINANCIALS LEAD SECTOR MIX
Deal making in the Technology sector totaled US$374.8 billion during the first nine months of 2024, an increase of 29% compared to 2023 levels and accounting for 16% of overall value. Energy & Power deal making also accounted for 16% of first nine-month activity, up 20% compared to the first nine months of 2023. Financials M&A totaled US$307.2 billion during the first nine months of 2024, an increase of 35% compared to a year ago.
PRIVATE EQUITY-BACKED M&A UP 40%
Private Equity-backed buyouts accounted for 24% of M&A activity during the first nine months of 2024, up from 20% during the first nine months of 2023. Overall value reached US$547.9 billion, an increase of 40% compared to a year ago and the strongest first half for private equity deal making in two years. The first nine months of 2024 ranks as the fourth largest opening period for PE-backed M&A since records began in 1980.
TECHNOLOGY, INDUSTRIALS, ENERGY DRIVE CROSS-BORDER M&A UP 26%
Cross-border M&A activity totaled US$807.5 billion during the first nine months of 2024, a 26% increase compared to a year ago and the strongest first nine months for cross-border M&A in two years. The Technology, Industrials and Energy & Power sectors accounted for 39% of cross-border deals during the first nine months of 2024, down from 45% a year ago.
EMERGING MARKETS DEALS INTELLIGENCE
EMERGING MARKETS DEAL MAKING FALLS 7% TO 11-YEAR LOW
M&A activity with emerging markets involvement totaled US$485.7 billion during the first nine months of 2024, a 7% decrease compared to 2023 levels and the slowest opening first nine months for emerging markets deal making since 2013. By number of deals, emerging markets deal making decreased 16% compared to the first nine months of 2023. The third quarter of 2024 increased 4%, by value, compared to the first quarter of last year but registered a 5% decline, by number of deals.
MATERIALS, INDUSTRIALS, AND ENERGY LEAD EMERGING MARKETS SECTOR MIX
Deal making in the Materials sector totaled US$77.4 billion during the first nine months of 2024, a 33% increase compared to 2023 levels. Industrials M&A accounted for 15% of activity while Financials M&A accounted for 13% of overall emerging markets M&A during the first nine months of 2024. Collectively, the top three industries accounted for 45% of total emerging markets deals this year, on par with year ago levels.
CHINA AND INDIA ACCOUNT FOR 44% OF EMERGING MARKETS M&A
M&A activity involving targets in China and India accounted for 44% of overall emerging markets M&A activity during the first nine months of 2024, down from 50% during the first nine months of 2023. Deals involving targets in India decreased 22% compared to a year ago, China target deal making declined 17% compared to the first nine months of 2023. South Africa, Taiwan and Malaysia deal making registered strong triple-digit percentage gains compared to last year.
MEGA DEALS ACCOUNT FOR 16% OF ANNOUNCED EMERGING MARKETS VALUE
The value of emerging markets M&A greater than US$5 billion totaled US$78.1 billion during the first nine months of 2024, an increase of 32% compared to year ago levels. Ten deals greater than US$5 billion accounted for 16% of announced emerging markets M&A activity during the first nine months of 2024, up from 11% during the first nine months of 2023 and the highest percentage of overall deal making since 2022.
CROSS-BORDER EMERGING MARKETS M&A DECLINES 12% TO FOUR-YEAR LOW
Cross-border emerging markets M&A activity totaled US$190.1 billion during the first nine months of 2024, a 12% decrease compared to the first nine months of 2023 and the slowest opening period for cross-border M&A since 2020. Materials, Energy & Power and Financials deal making accounted for 43% of overall cross-border emerging markets M&A during the first nine months of 2024, up from 23% a year ago.
EMERGING MARKETS BUYOUTS DOWN 3%
Private Equity-backed buyouts in the emerging markets, which accounted for 13% of overall activity, totaled US$63.8 billion during the first nine months of 2024, a decrease of 3% compared to 2023 levels. Consumer Products, Technology and Industrials buyouts accounted for 60% of first nine-month 2024 emerging markets activity, up from 45% a year ago.
GOLDMAN SACHS TAKES TOP SPOT FOR EMERGING MARKETS M&A ADVICE
Goldman Sachs took the top spot for M&A advice involving emerging markets countries during the first nine months of 2024, with US$69.8 billion from 50 deals, up from fourth place a year ago. Morgan Stanley took second place during the first nine months of 2024 while Citi took third place. Rothschild and UBS rounded out the top five financial advisors.
