June 9, 2024
Although 2023 saw less than 40,000 mergers and acquisition (M&A) deals, considerably less than at the market peak in 2021, this figure still pushed the ten-year total to impressive highs.
According to data presented by AltIndex.com, the business sector saw more than half a billion merger and acquisition (M&A) deals in the past decade.
Total Value of Deals Hits USD 39.3 Trillion in the Past Decade
The deal activity in the mergers and acquisitions market has been on a downward spiral for the last year and a half, as macroeconomic uncertainty, inflation, rising interest rates, and volatile capital markets brought declining values for potential sellers and caused many corporations to focus internally instead of making acquisitions.
During the five months of 2024, the business sector saw 13,176 M&A deals worth over one trillion dollars, much less than in the same period a year ago and way below the activity seen in 2021 or 2022. But despite the apparent drop, the total number and value of M&A deals in the past decade remains impressive. According to the Institute for Mergers, Acquisitions, and Alliances data, since 2014, 514,325 transactions have been announced worldwide with a value of over USD 39.3 trillion.
Nearly half of all deals were completed in the US market, home to some of the leading M&A financial advisors, like Goldman Sachs, JP Morgan, and Goldman Sachs. Statistics show the US merger and acquisition market saw 214,364 transactions in the past decade, valued at USD 25.2 trillion. In contrast, Europe lags behind in terms of both the number and value of M&A deals. Since 2014, European corporations have taken part in 196,691 mergers and acquisitions worth over USD 16 trillion, or 36 percent less than in the United States.
Deal Activity in the M&A Market to Continue Falling in 2024
Although the M&A outlook signals rebounding deal market activity in 2024, the total number and the value of deals will remain below last year’s levels.
According to the Institute for Mergers, Acquisitions and Alliances data, the total number of transactions in the global M&A market is expected to hit 31,662 by the end of the year, or 20 percent less than in 2023. Furthermore, the total value of deals is projected to reach USD 2.44 trillion, two percent less than last year, pushing the ten-year total to USD 41.7 trillion. This figure aligns with Statista market projections, which show similar values. According to Statista, the global M&A market will see USD 2.57 trillion worth of transactions in 2024, and roughly 45 percent of that value will come from the United States.
