Globally, M&A activity is on increasing. However, the rates of growth data room software are not uniform. It also differs by industry and by region.
Some sectors are seeing a boom in M&A such as technology, energy and healthcare. Other industries, such as financial services and education have seen a smaller growth.
Many companies are trying to achieve business transformation and profitable growth via strategic acquisitions. Particularly they are targeting businesses in the service industry that offer digital solutions for customer engagement and business operations, as well as companies who can assist them in complying with environmental regulations and reduce emissions. They may also want to acquire manufacturing assets, such as those for production of electric vehicles.
Global M&A activity slowed in the first half 2024 but could increase as financial sponsors use their capital, and activist investors continue calling for change at the corporate level. The Americas was the largest M&A market followed by Asia and Europe. In terms of deal value, 2024’s opening nine months were dominated by deals worth $10 billion or higher than any year prior to the pandemic.
The rapid pace of technological advancement continues to propel M&A, as businesses acquire technologies that can improve their products or help them to enter new markets. M&A in the industrial manufacturing sector is growing as companies invest in AI and machine learning as well as predictive robots and smart factories in order to increase productivity and efficiency. The rapid growth of e-commerce has also triggered M&A by logistics companies seeking to acquire or establish distribution networks. Certain companies join forces to expand or consolidate their product lines. Others join for cost-savings or R&D synergies.
