Global M&A Activity Shows Signs of Recovery in First Half of 2024

The global market for mergers and acquisitions (M&A) experienced a cautious recovery during the first half of 2024, with deal value increasing by 4% compared to the same period in 2023, according to research by BCG.

While this represents a positive shift from the downturn experienced in 2023, the overall value remains below the 10-year average of $1.5 trillion. Despite this, the increase in deal value suggests that investor confidence is slowly returning, fueled by factors such as the easing of interest rate hikes and a more stable global economic outlook.

M&A Activity: A Look at the Numbers

The first half of 2024 saw a total of $1.0 trillion worth of M&A transactions globally. While this represents a modest increase from the previous year, it is still below pre-pandemic levels. The increase in deal value is primarily attributed to a surge in cross-border transactions and a rise in private equity activity.

Key Trends in M&A Activity

Increased Cross-Border Deals

Cross-border transactions played a significant role in driving the increase in M&A activity during the first half of 2024. This trend is likely driven by companies seeking to expand their global reach and access new markets.

Rise of Private Equity Activity

Private equity firms have been active participants in the M&A market, capitalizing on the availability of capital and attractive valuations. This trend is expected to continue as private equity firms seek to invest in companies with strong growth potential.

Decline in Activist Campaigns

While M&A activity has shown some recovery, there has been a slight decline in investor activism. This could be attributed to the improving economic outlook and the decreased need for companies to make changes to their operations or financial strategies to appease activist investors.

Regional Trends in M&A Activity

Europe

The European M&A market saw a notable increase in activity during the first half of 2024, driven by a surge in deal volume and value. Several factors contributed to this growth, including a more favorable economic environment, increased investor confidence, and a focus on cross-border deals.

Notable European M&A Deals

BlackRock's acquisition of Global Infrastructure Partners
Ermenegildo Zegna's acquisition of Tom Ford International

Asia-Pacific

The Asia-Pacific M&A market experienced a decline in deal value during the first half of 2024, primarily driven by a slowdown in activity in China and Japan. However, several factors suggest that the market will rebound in the second half of the year.

Notable Asia-Pacific M&A Deals

Sodali's expansion beyond its traditional proxy business, becoming a force in communications.

Impact on the PR Industry

The rebound in global M&A activity has had a positive impact on the PR industry, particularly for firms specializing in financial communications and investor relations. Several leading PR agencies saw a significant increase in their M&A deal volume and value during the first half of 2024.

Notable PR Agency Performance

FGS Global ranked #1 globally in terms of both the value and volume of M&A deals worked.
Brunswick Group ranked second in terms of deal volume globally.
Prosek Partners saw its deal count increase by 33%, taking third place on the global rankings.

The Outlook for M&A in the Second Half of 2024

The outlook for global M&A activity in the second half of 2024 is cautiously optimistic. The continued easing of interest rate hikes, a more stable global economic outlook, and the increasing availability of capital are all expected to drive further growth in deal value and volume.

However, several challenges remain, including geopolitical uncertainty, inflation, and potential economic slowdowns. Companies will need to carefully consider these factors when making M&A decisions.

M&A Strategies for the Future

Companies should adopt a long-term view and focus on strategies that will create sustainable value for their stakeholders. This includes:

Identifying and pursuing strategic acquisitions that will expand their market reach, strengthen their competitive position, and create new growth opportunities.
Investing in technology and innovation to drive efficiency and growth.
Building strong relationships with their stakeholders, including investors, employees, customers, and regulators.

By taking these steps, companies can position themselves for success in a dynamic and evolving M&A market.

A Final Word

The global M&A market is expected to remain active in the second half of 2024, with opportunities for companies that are prepared to navigate the challenges and capitalize on the opportunities. By understanding the key trends and drivers of the market, companies can make informed decisions and achieve their strategic goals.