Global M&A 2024 Market Review
Global M&A Activity Rebounds with Renewed Confidence
Global M&A activity surged in 2024, signaling a robust recovery from the slowdown seen in 2022. Global deal value rose by 22.8% year-over-year, while deal volume grew by 13.6%, driven by improved macroeconomic conditions, stabilizing valuations, and easing interest rate concerns. North America and Europe led the rebound, with strong contributions from the B2B, IT, and financial services sectors.
Private equity remains a powerful force in the market, holding over $3 trillion in dry powder. Although cautious in 2024 due to high valuations, PE firms are poised to ramp up deployment in 2025 as borrowing conditions improve. Sponsor-led take-privates and consolidation in fragmented markets are expected to drive deal flow, particularly in industrials, software, and healthcare services.
Sector-Specific Insights: B2B, Financials, and Tech in Focus
M&A activity across sectors shows varied momentum. B2B transactions climbed to $971 billion, up 18% year-over-year, with consistent growth across quarters. Financial services saw the highest fourth-quarter deal count ever, with total value reaching $496 billion—driven by insurance consolidation and renewed investor confidence. Meanwhile, IT remained a key driver of overall deal value, despite a temporary Q4 dip tied to U.S. election-related uncertainty.
Sector-specific multiples suggest continued appetite for quality assets, with healthcare and tech commanding the highest EV/EBITDA premiums. Corporate buyers remain dominant, though private equity is closing the gap, particularly through strategic add-ons.
Looking ahead to 2025, expectations are high: lower interest rates, clarified regulatory guidelines, and geopolitical stabilization are all anticipated to further boost global M&A. For dealmakers, 2025 represents an opportunity to strategically deploy capital and capture market share through transformative acquisitions.
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