2024 Witnesses a 13.5% Surge in M&A Activity as Deal-Making Makes a Strong Comeback
Merger and acquisition (M&A) activity has made a strong comeback in 2024, with deal values witnessing a 13.5% year-on-year increase to reach $88.9 billion within the first eleven months, as per Bloomberg data. This resurgence in the M&A market, following a decline in previous years, is expected to result in substantial bonuses for investment bankers.
The year 2024 saw some of the largest transactions, including:
- ExxonMobil’s $60 billion acquisition of Pioneer Natural Resources
- Mars’ $36 billion purchase of Kellanova
- Capital One’s proposed $35 billion merger with Discover Financial Services
Deal volume also saw a significant increase, rising 25.9% to 2,811 transactions, compared to 2,232 transactions in the same period last year.
Industry experts are predicting another record-breaking year for M&A activity in 2025. This is expected to be driven by factors such as healthy economic growth, technological advancements, and significant “dry powder” (unallocated cash) held by private equity firms. Key sectors driving this activity include manufacturing, consumer goods, IT, pharmaceuticals, healthcare, and real estate. Stable interest rates and slowing inflation are creating favorable conditions for deal-making.
Source: IBEF