M&A Activity Soars in 2024 Amidst Geopolitical Uncertainty

In 2024, M&A activity has surged, particularly in large deals valued over $1 billion, with 46 transactions reported in the latest quarter, a 31% increase from the previous year. Notably, there has also been a rise in megadeals, with 13 deals exceeding $10 billion completed so far. However, smaller deals valued over $100 million have seen a decline, dropping from 188 to 157 transactions. As businesses adapt to geopolitical uncertainties and interest rate fluctuations, there is a trend towards intra-sector acquisitions, highlighting companies' efforts to consolidate within their markets.

Despite the uptick in large deals, many companies involved in M&A have struggled with share price returns, underperforming the wider market by -9%. In Europe, though, there has been a positive turnaround with deal numbers and performance increasing, while North America faces ongoing challenges, particularly in maintaining competitive deal volumes. The Asia Pacific region has also shown declining activity, particularly in China, suggesting varying regional dynamics influencing the M&A landscape.

WTW emphasizes the importance of thorough due diligence and effective integration for success in this evolving market, especially amidst increased scrutiny and complex transactions. With their expertise in risk and human capital, WTW aims to guide clients through these changing M&A dynamics and help maximize value in potential deals.