2024 Global M&A Report
In 2024, the global M&A market showed signs of a concrete and steady recovery across regions and sectors, against the backdrop of a stabilizing macroeconomic environment and the recalibration of corporate valuations. Below, we explain specific examples and figures in detail for each major item.
1. Market Overview and Regional Details
North American Market Realities
Transaction Value and Volume
In North America, the total transaction value exceeded $2 trillion, with 17,509 deals actually completed. This represents a 16.4% increase in transaction value and a 9.8% rise in deal volume compared to the previous year, with large take-private transactions particularly driving the market.Specific Examples
Within the United States, large-scale transactions were completed in each quarter; for example, in Q3, multiple large deals aimed at corporate restructuring were executed, which recorded a peak in total transaction value.Cross-border Flows
Meanwhile, U.S. investors found European assets attractive, with approximately $4.41 billion in capital flowing into Europe. This is driven by the strength of the U.S. dollar and the relative undervaluation of Europe, where the EV/EBITDA ratio is 8.3x (compared to 10.3x in the U.S.).
European Market Recovery
Transaction Trends
Europe has moved past the previous interest rate tightening phase, with transaction value increasing by 29.2% and deal volume by 17.5% from the previous year. In particular, in the fourth quarter, multiple large take-private transactions were completed as U.S. investors were attracted by low valuations.Specific Examples
The German chemical manufacturer "Covestro" was acquired by the Abu Dhabi National Oil Company (ADNOC) for approximately $16.3 billion (about 16.3 billion euros), marking a record transaction for the European materials and resources sector.
2. Valuation Metrics and Specific Evaluation Status
Overall Valuation Metrics
In 2024 M&A transactions, the overall median EV/EBITDA stabilized at 8.8x and EV/Revenue at 1.5x. This is a decrease of approximately 15-20% from the 10.7x (EV/EBITDA) peak reached in 2021, indicating that the adjustment phase has concluded.Regional Differences
In the U.S., the EV/EBITDA ratio rose from 9.3x in 2023 to 10.3x in 2024. Conversely, in Europe, it fell from 8.9x to 8.3x, widening the valuation gap.Comparison with Public Markets
The median EV/EBITDA for S&P 500 companies in the public bond market is approximately 14.7x, and the gap with the private market remains significant. As a result, an increase in the valuations of private companies is expected in the future.
3. Sector Trends and Specific Transaction Examples
[IT/Technology Sector]
Market Size and Growth
The IT sector recorded a total transaction value of $74.07 billion across 7,455 deals. Software companies were highly valued as acquisition targets due to their high gross margins and proprietary technologies (such as AI, simulation, and cloud services).-
Specific Examples
Altair Engineering acquisition: Siemens completed a $1.06 billion all-cash acquisition. Altair provides enterprise engineering software and possesses strengths in AI and high-performance computing.
Ziply Fiber acquisition: BCE acquired the fiber optic infrastructure business in the U.S. Pacific Northwest for approximately $500 million, expanding its foothold in the U.S. market.
[B2B Sector]
Market Trends
The B2B sector saw 17,520 transactions with a total deal value of approximately $97.14 billion, representing a year-on-year growth of 13.8% in volume and 18.6% in transaction value. There were many large-scale take-private deals, aimed at corporate restructuring and synergy creation.-
Specific Examples
The Home Depot'sSRS Distributionacquisition: An $18 billion deal was closed in Q1, aimed at strengthening distribution and logistics infrastructure.
Novo Holdings'sCatalentacquisition: A $16.5 billion transaction in December accelerated investment in the pharmaceutical manufacturing support sector.
[B2C Sector]
Signs of Recovery
In the B2C market, approximately 9,933 transactions were recorded with a total deal value of $63.51 billion. The number of deals increased by 22.9% year-on-year, and the total transaction value rose by 44.2%, nearly returning to pre-pandemic levels.-
Specific Examples
Nordstrom going private: The $6.3 billion deal by the Nordstrom family and the Mexican retail group 'El Puerto de Liverpool' is a strategy aimed at freeing the company from the pressures of being publicly traded.
Saks Global's acquisition ofNeiman Marcus acquisition: Through integration between luxury retail brands, the goal was to expand the consumer base and strengthen brand power.
[Energy and Clean Tech Sector]
Market Overview
The energy sector, reversing its growth from the past few years, saw a slightly sluggish 2024 with a total deal value of $31.21 billion. However, in the clean tech sector, the shift toward renewable energy is significant.-
Specific Examples
ONEOK's full acquisition of EnLink Midstream: In addition to its existing 43% stake, ONEOK acquired the remaining shares for $4.3 billion. With this, it aimed to expand its market share in the Permian Basin.
Trends at TotalEnergies and JSW Energy: TotalEnergies acquired VSB Group from a PE fund for $160 million, accelerating renewable energy projects in Europe. Furthermore, JSW Energy's Neo Energy division acquired Temasek-backed O2 Power's assets for $150 million, with a goal of achieving 20GW of renewable energy capacity by 2030.
[Financial Services Sector]
Expansion of Market Size
In the financial services sector, there were 3,422 deals totaling $46.98 billion, an 8.8% increase in deal volume and a 43% increase in deal value compared to the previous year. Market restructuring and integration progressed actively.-
Specific Examples
Acquisition of AssuredPartners by Arthur J. Gallagher & Co.: A $1.35 billion transaction that strengthens its presence in the mid-market insurance brokerage sector in the United States.
Acquisition of Direct Line Insurance Group by Aviva: Through this $460 million acquisition, the company aimed to expand its market share in regions centered on the UK, Canada, and Ireland.
Consolidation in the Asset Management Sector: Large-scale integrations, such as BlackRock's $1.2 billion acquisition of HPS Investment Partners, have enabled the scaling of private credit and real estate investments.
[Healthcare Sector]
Transaction Trends
In the healthcare sector, a total of 1,005 transactions were completed in Q4, with a total transaction value of $8.85 billion. While the number of transactions remained solid, the value was modest, in line with overall market trends.-
Specific Examples
Acquisition of Patterson Companies by Patient Square Capital: A $410 million acquisition was executed to strengthen the distribution system in the dental sector.
Acquisition of Exscientia by Recursion Pharmaceuticals: At $688 million, this investment in AI-driven drug discovery is expected to improve the efficiency of future drug development processes and enhance market competitiveness.
[Materials and Resources Sector]
Market Recovery and Restructuring
In the materials and resources sector, 1,694 transactions were completed, with a total transaction value reaching approximately $19.99 billion. In particular, the fourth quarter saw a concentration of large deals, with transaction value recording $8.7 billion.-
Specific Examples
ADNOC's acquisition of Covestro: The $16.3 billion acquisition became a major deal to take the German chemical manufacturer private and served as a historic highlight in the sector.
Apollo-backed Novolex's acquisition of Pactiv Evergreen: The $6.7 billion merger realized a strategy of diversification and integration of the business base in the packaging industry.
Trends in the mining sector: Rio Tinto acquired Arcadium Lithium for $6.7 billion to secure lithium resources necessary for the energy transition, while Anglo American sold its business to Peabody Energy for $3.8 billion to restructure coking resources needed for steel manufacturing.
4. Specific Measures for Risk Management and Sell-side Readiness
Importance of Advance Preparation
Before a seller enters the M&A process, thorough "sell-side readiness" in all aspects, including financial, tax, and legal, is essential to gain the buyer's trust and advance the deal terms favorably.Concrete Case Study
At one company, a potential tax risk involving a tax liability of up to $25 million was discovered during the early stages of due diligence. By collaborating with experts early on and presenting detailed documentation and problem-solving measures, they succeeded in reducing the buyer's price reduction demand from $50 million to approximately $15 million.Utilization of Technology
Furthermore, by utilizing digital tools (e.g., Ideals VDR, etc.) to enhance document management and data security, and conducting risk assessments via AI, the transparency and speed of the entire transaction process were improved, resulting in reports of the time to closing being shortened by an average of 63 days.
5. Future Outlook and Strategic Direction
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Future Outlook by Region and Sector
In the United States, domestic and cross-border transactions are expected to remain active due to further interest rate cuts and sustained political stability.
In Europe, against the backdrop of a valuation gap with the U.S., low valuation levels will continue to be attractive, with transactions expected particularly in the materials, resources, and financial services sectors.
Technological innovation supporting growth
In the IT and healthcare sectors, technological innovations in AI, digital health, and precision medicine are becoming new drivers of M&A, with revenue improvements expected through post-acquisition synergies.Strategic integration and corporate restructuring
Companies are increasingly tending to actively promote carry-over take-private transactions, as well as spin-offs and carve-outs, in order to restructure existing businesses and focus on core operations.Managing the regulatory environment and political risk
As government regulatory trends regarding M&A (particularly the strengthening of reviews by CFIUS, the FTC, and the EC) continue to be closely watched, companies must conduct thorough risk assessments in advance and prepare flexible contingency plans.Utilization of investor capital
There is an abundance of capital supply from global private equity funds and venture capital, and these funds will serve as a key factor in accelerating future transactions, as well as functioning as a source of capital to support post-acquisition corporate growth.
The 2024 global M&A market is on a recovery trend, supported by concrete figures and real-world examples across various regions and sectors. In major North American and European markets, mature valuation metrics and active cross-border transactions have spurred market restructuring, with specific large-scale deals concluded in fields such as IT, B2B, B2C, energy, financial services, healthcare, and materials and resources. Furthermore, through seller-side preparation and the use of digital tools, risk management has been thoroughly implemented, achieving greater speed and transparency in the transaction process.
These specific cases and figures provide hints for further growth and strategic restructuring in the M&A market from 2025 onwards, and will continue to serve as valuable indicators for companies to flexibly respond to the changing economic environment and identify growth opportunities.
