2024 M&A Trends: Disruptive Moves and High-Stakes Decisions

The M&A landscape in 2024 reflects resilience and recalibration. While the market has not returned to the extraordinary levels seen in recent years, it has charted a path of cautious progress. Dealmakers are adapting to a complex global environment, capitalizing on opportunities in transformative sectors and regions that promise enduring growth.

Shifting Global Dynamics in M&A

Global M&A activity in 2024 has not reached historic highs but shows signs of recovery. The first nine months recorded approximately $1.6 trillion in announced deals across 22,400 transactions—a 10% increase in deal value compared to the same period in 2023. While modest, this growth reflects broader 2024 M&A trends that suggest a cautious but steady rebound from the market’s peak in 2021.

BCG’s M&A Sentiment Index reflects this incremental improvement, highlighting North America and Europe as hubs of activity. Driving this momentum are trends like energy transformation, digitization, and the accelerating adoption of artificial intelligence (AI), all of which are reshaping industries worldwide.

Regional Performance: Contrasts and Opportunities

Source: BCG – Early Signs of a Recovery

From this graph, it can be inferred that the key regions are Asian Pacific, Europe and North America

Asia-Pacific: The Asia-Pacific region experienced a 5% decline in M&A activity. While setbacks in China and Australia weighed heavily, growth in India (66%) and Malaysia (132%) underscored the potential for selective regional gains.

Europe: Europe exhibited resilience, with a 14% growth in deal value totaling $353 billion. The UK spearheaded this recovery with a remarkable 131% increase, fueled by post-election economic stability. France and Sweden also showed strong performance, while Germany and other key markets experienced significant declines.

North America: The United States led the global M&A landscape, with deal value increasing by 21% year-over-year to $924 billion. Despite an 11% drop in deal volume, the region accounted for 55% of global activity, demonstrating a strong preference for high-value transactions.

Sector Highlights: A Spotlight on Transformative Deals

While technology, media, and communications experienced a 36% increase in deal value, declines in industrials (-42%), healthcare (-11%), and materials (-27%) illustrate a fragmented recovery. A snapshot of these sectors along with major deals is as follows:

Energy

Energy transactions dominated headlines, with the following two major deals:

Diamondback Energy’s Acquisition of Endeavor Energy Resources: In February 2024, Diamondback Energy announced a $26 billion cash-and-stock deal to acquire Endeavor Energy Resources, creating the largest operator focused on the Permian Basin. This strategic move aimed to enhance operational efficiency and expand Diamondback’s footprint in one of the most prolific oil-producing regions in the U.S.

ConocoPhillips’ Purchase of Marathon Oil: ConocoPhillips agreed to acquire Marathon Oil for approximately $22.5 billion. This acquisition was part of a broader $200 billion wave of mergers reshaping the U.S. shale industry, with major players consolidating to secure prime drilling acreage and achieve cost efficiencies.

Technology Particularly AI

The technology sector remained dynamic, fueled by advancements in artificial intelligence (AI) and digital transformation. High-profile transactions such as Synopsys’s $33.5 billion acquisition of Ansys and Hewlett Packard Enterprise’s $15.4 billion purchase of Juniper Networks underscore the escalating demand for advanced technological solutions.

Additionally, AI’s prominence as a driving force in mergers and acquisitions has grown significantly. In Q3 2024 alone, AI accounted for 19 financial services deals with a combined value of $855.2 million, marking an 8% increase from the prior quarter and a staggering 1024% rise compared to Q3 2023. The $430 million merger of Healthcare AI Acquisition and Leading Group with FII AMC Mexico was the industry’s largest disclosed AI-related deal.

Source: Retail Banker International

Furthermore, in Europe, AI startups emerged as a vibrant sector despite broader economic challenges. According to VC firm Balderton Capital and Dealroom, 25% of venture funding in 2024—approximately $13.7 billion—was directed to European AI companies, doubling their collective value to $508 billion over the past four years. Rising stars like Mistral AI, Photoroom, and Dottxt were among the key players contributing to the growth. 

Industrials

The industrial sector experienced decline but the two prominent deals in this domain were as follows:

International Paper’s Purchase of DS Smith: International Paper announced an $11.1 billion acquisition of DS Smith, aiming to expand its packaging solutions and strengthen its market position amid industry challenges.

Boeing’s Acquisition of Spirit AeroSystems: Boeing purchased Spirit AeroSystems for $8.6 billion to reflect a strategic move to consolidate its supply chain and enhance production capabilities in response to broader industry challenges.

In this evolving market, it is essential to highlight the acquisitions made by top companies.

Leading Startup Acquirers

Based on the data from Crunchbase and Mind the Bridge, the graph summarizes the top companies that have acquired the most startups, along with their acquisition counts and total deal values:

Infographic created by hyperexits.com

Insights into Acquisition Strategies

• Alphabet (Google): Leading the list, Alphabet—Google’s parent company—has completed 222 acquisitions, with a total value of $16.6 billion. Google’s strategy is deeply rooted in integrating innovative technologies to enhance its core offerings, including advertising and cloud computing. Notable acquisitions like YouTube and Nest Labs not only expanded Google’s service portfolio but also reinforced its position as a tech powerhouse.
• Microsoft: Microsoft follows closely with 140 acquisitions worth approximately $50.1 billion. The company’s acquisition strategy often revolves around complementing its existing products. Key acquisitions, such as LinkedIn and GitHub, exemplify this approach, as both have seamlessly integrated into Microsoft’s ecosystem to enhance its software and professional networking capabilities.
• Cisco Systems: With 134 acquisitions totaling $59.8 billion, Cisco’s M&A activities focus on strengthening its technological edge in networking and security. The company’s acquisitions underscore its commitment to innovation in hardware and software solutions, ensuring it remains a leader in the networking space.
• Accenture: The global consulting firm Accenture has acquired 119 companies to bolster its consulting and digital transformation offerings. While the total deal value remains undisclosed, these acquisitions underscore Accenture’s focus on integrating technology-driven solutions to enhance its services.
• Apple: Apple’s 102 acquisitions, valued at $6.5 billion, reflect its strategic emphasis on startups that align with its brand values and product ecosystem. From enhancing device capabilities to exploring groundbreaking technologies, Apple’s M&A strategy remains tightly aligned with its innovation-driven ethos.
• Meta Platforms (formerly Facebook): Meta has acquired 98 startups, investing $23.5 billion to strengthen its core platforms and explore emerging fields like virtual and augmented reality. This forward-looking strategy underpins Meta’s ambition to lead in social connectivity and immersive technologies.

Major Challenge Posed by CMA

M&A activities face a pivotal regulatory challenge in navigating antitrust scrutiny, particularly under the vigilant oversight of the UK’s Competition and Markets Authority (CMA). As the primary antitrust and competition regulator, the CMA rigorously examines whether proposed transactions might harm market competition by creating monopolies, reducing consumer choice, or driving up prices. High-profile cases, such as Microsoft’s acquisition of Activision Blizzard, underscore the CMA’s stringent approach, which often involves prolonged investigations, extensive documentation, and potential deal modifications. 

This can be demonstrated by the proposed merger between Seedrs and Crowdcube, two leading equity crowdfunding platforms in the UK. The deal was intended to create a dominant player in the industry, leveraging synergies to expand services and better support startups seeking alternative funding sources. However, the CMA raised concerns that the merger would substantially reduce competition in the nascent equity crowdfunding market, potentially leading to higher fees for businesses and fewer options for investors. Despite arguments from both companies that the combined entity would enhance market efficiency and innovation, the CMA’s investigation concluded that competition would be significantly weakened. Consequently, the merger was blocked, forcing both platforms to pursue independent growth strategies. 

Conclusion

Today the slowdown in the IPO market has amplified the importance of mergers and acquisitions as a preferred exit strategy. The challenges in pursuing public offerings have redirected focus toward M&A deals, providing companies with an effective means to navigate volatile markets. Key factors driving this shift include the need for risk management, and profit protection in decision-making. Alternative routes such as private sales, block trades, and corporate carve-outs are becoming essential tools for investors and companies seeking liquidity and strategic realignment. The adaptability of M&A structures allow businesses to respond to dynamic market conditions, ensuring optimal returns and facilitating long-term growth.

Looking ahead to 2025, several trends are poised to shape the M&A landscape further. Sponsors are playing a critical role in simplifying transactions by acting as carve-out partners, leveraging their expertise and credibility to navigate complex deals in an environment where the cost of capital remains a challenge. Innovative deal structures, including earnout provisions, collars, and equity rollovers, are unlocking new possibilities tailored to the specific needs of businesses.

Corporates are increasingly pursuing regional separations to maximize valuation, target specific investor bases, and achieve strategic clarity amid a shifting global landscape. Additionally, spin-offs are gaining traction, driven by both activism and the strategic focus on newly spun-off entities. This trend highlights the growing importance of robust governance and adequate capitalization for companies to succeed independently.