NEW YORK/LONDON – 18 December 2024: Mergermarket, an ION Analytics service, released its 2024 Full-Year M&A Highlights report today, revealing a cautious recovery in global M&A in 2024. M&A volume reached USD 3.4 trillion, up 8% compared to last year’s decade low. Despite historically subdued dealmaking, early indicators suggest positive signs for 2025 after central banks in the US and Europe began cutting rates, and this year’s record number of elections worldwide concluded.

Donald Trump’s re-election and the Republican sweep in Congress have raised expectations for a surge in US deal making in 2025. Promises of lower corporate taxes, deregulation, and leadership changes at key regulatory agencies have many dealmakers eyeing opportunities for large transactions previously hindered by antitrust scrutiny under the Biden administration.

The global M&A market saw a boost in 1H24 driven by easing financing conditions and strategic large-cap deals. However, a persistent valuation gap between buyers and sellers caused small- and mid-cap activity to remain sluggish. While interest rate cuts offer hope for unlocking more deals, European and Asian boardrooms are grappling with election impacts and the threat of trade wars as 2025 approaches.

Key findings from the report include:

• Global M&A volume reached USD 3.4 trillion. North America led global M&A activity with 50% of deal volume in 2024, followed by EMEA at 25% and Asia Pacific at 22%. In Asia, Japan and Australasia emerged as key M&A hot spots.
• Larger deals recovered in 2024, with USD 2 billion-plus transactions rising 20% year-over-year, although mega deals (USD 10 billion+) increased to 37 from 35 in 2023.
• Corporates dominated M&A, with nine of the top 10 deals involving strategic acquirers as financial sponsors shied away from mega transactions.
• The tech sector led with 19% of global deal volume, up from 17% last year but down from 24%-25% in 2022 and 2021. Then came healthcare at 10% and finance at 9%.
• Global buyout volume rose 34% and exit volume increased 25%, though both remained below 2021 peaks.

Lucinda Guthrie, Head of Mergermarket, says, “The global M&A market in 2024 saw a year of rebound, with large-cap deals leading the charge amid easing financing conditions. Omnicom’s acquisition of Interpublic, creating the world’s largest advertising agency, will serve as a bellwether for the Trump administration’s view on antitrust. Swiss packaging group Amcor’s move on its US competitor, Berry Global, underscores the growing trend of European companies targeting the US for growth.

“Overall, 2024 laid a rocky path to M&A recovery. There was improved boardroom confidence as large companies drove a rise in all-share transactions and buyout activity, particularly in the tech and healthcare sectors. But valuation gaps and new economic policies create new challenges to be navigated. Despite ongoing geopolitical challenges, there is a positive momentum going into 2025.”

To download the full report, click here.

**All data accurate as of 16 December 2024.