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Domestic M&A Activity
U.S. M&A activity in 2024 showed a notable recovery compared to 2023, with increased deal volume and value. The market rebounded from the slowdown experienced in 2023, driven by several key factors:
Deal Volume and Value
- U.S. domestic M&A market is projecting 9,842 deals for 2024, up from 9,233 in 2023.
- The aggregate deal value is expected to reach $1.34 trillion in 2024, a significant increase from $1.02 trillion in 2023.
- Through September 2024, private equity (PE) and corporate M&A deal volumes were up 17% year-to-date compared to 2023.
Key Drivers
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Economic Factors: Stabilizing inflation, stock market highs, and stronger corporate profits fueled a moderate recovery.
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Interest Rates: The Federal Reserve’s interest rate cut in September 2024 contributed to increased deal activity.
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Technology: Emphasis on generative AI and digital transformation drove acquisitions across various sectors.
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Sector Performance: Financial services M&A saw a spike in overall volume, led by significant deals like Capital One’s $35 billion acquisition of Discover.
Sector Highlights
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Energy: Major deals included ConocoPhillips’ $36 billion acquisition of Burlington Resources.
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Technology: Notable transactions such as Synopsys’ $35 billion acquisition of Ansys.
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Healthcare: Active M&A driven by AI, weight loss drugs, and innovations in medical devices.
Challenges and Uncertainties
Despite the recovery, some factors continued to impact the M&A landscape:
- Persistent high interest rates in the first half of 2024.
- Regulatory and geopolitical uncertainties.
- The approaching U.S. presidential election in November 2024.
Outlook
The M&A market is expected to continue its recovery, with projections indicating:
- A 10% rise in total U.S. deal volume (PE plus corporate M&A) in 2025, following an expected 13% advance in 2024.
- Increased dealmaking in the second half of 2024, driven by expected interest rate reductions.
While the U.S. M&A market in 2024 showed significant improvement over 2023, it remained below the peak levels in 2021 and 2022. The recovery was characterized by increased deal volumes, higher aggregate values, and renewed activity across various sectors, particularly in technology and financial services.
In 2024, several sectors experienced significant M&A activity in the United States, driven by strategic priorities and market conditions:
As we approach the close of a memorable 2024, this season offers an opportunity to reflect and express our sincere gratitude. I am proud of the successes I’ve experienced this year and eager to build on this momentum as we look to a prosperous year ahead.
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