Global M&A Value Surge 10% Till September-End

The global aggregate M&A value edged up by 10% compared with the same period last year, totalling $1.6 trillion in the first nine months of this year, Boston Consulting Group (BCG) said in its 21^st edition of the Global M&A Report on Wednesday.

Similarly, the number of megadeals (those valued at $10 billion or more) has continued its downward trajectory. Only 17 megadeals were reported in the first nine months of 2024, compared with 20 in the corresponding period in 2023, the report said.

“After a shaky start to 2024, a sluggish second quarter, and most recently a volatile return to average activity levels, global M&A activity has been mixed this year. Although there are signs of a strengthening market, M&A’s recovery will be far from smooth. Many dealmakers remain wary of regulatory bottlenecks and political and macroeconomic uncertainty,” the US-based firm said.

Despite the caution, some players—especially in sectors such as energy, financials, and technology—are forging ahead with strategic deals that promise to reshape industries. It was also observed an uptick in larger deals in the consumer sectors. The forward-looking M&A Sentiment Index indicates more M&A activity on the horizon especially in the healthcare, technology, and energy sectors.

Jens Kengelbach, BCG’s global head of M&A and a co-author of the report said that so far in 2024, many dealmakers have either stayed on the side lines or tentatively dipped their toes in the water. But we are finally seeing the first signs of recovery for global M&A—albeit slowly and steadily—with dealmakers in energy, financials, and technology leading the pack, he said.

Regional Outlook

The North Americas deals totalled $958 billion, an increase of approximately 13% versus the first nine months of 2023. The vast majority (worth $877 billion) involved targets in North America, which accounted for 55% of global M&A activity. The US companies acquired most of these targets.

The value of European M&A stood at $353 billion, a 14% increase over the first nine months of last year. The deal value in the UK increased by 131%, resulting in the country’s highest share of European deal making since 2015.

Deal value also increased strongly in Sweden (111%), the Czech Republic (68%), and France (29%), driven by a few larger deals. In contrast, aggregate deal value was significantly lower than during the same period last year in Germany (–52%), Austria (–34%), Switzerland (–31%), and Italy (–25%).

Asia-Pacific deal value declined by 5% to a 10-year low of $263 billion. Declines in China (–41%) and Australia (–7%) were major factors in the lower regional total. There were bright spots, however, including Malaysia (132%), India (66%), Singapore (48%), Japan (37%), and South Korea (10%).

Regulatory Hurdles and Election Uncertainties

Regulators in major jurisdictions, including the US, Europe, the UK, and Australia, have adopted more aggressive stances. At the same time, countries were implementing protectionist measures, often targeting specific industries. Election cycles in major markets have only added to the regulatory fog.

The report analysed how these challenges affected the timelines and complexities of closing large M&A deals. Globally, for deals of $2 billion or more, the period from signing to closing stretched by 11% from 2018 to 2022, reaching 191 days.

Deals with a European acquirer have the longest closing timelines, while those with a US buyer have the shortest—although timelines are increasing in both regions, the BCG report said.

In fact, BCG’s analysis of more than 300 deals finds that over 40% failed to close within the originally projected timeline, with deals of $10 billion or more the likeliest to face additional delays. Among those delayed deals, 63% required an at least an additional three months to close. Larger deals, particularly those touting high synergies, tend to be the most affected.