Big Business Deals Grow in 2024: S&P Global Report Highlights
In the first half of 2024, global mergers and acquisitions (M&A) saw a rise in total transaction value by 11.7% to USD 1.221 trillion, despite a 12.9% drop in deal volumes, according to S&P Global Market Intelligence’s second quarter (Q2) 2024 Global M&A and Equity Offerings Report.
M&A are business transactions where the ownership of companies, business organizations, or their operational units is transferred to or combined with another company or business entity. The report reveals that while the number of deals declined by 12.9%, with 19,415 transactions recorded, the total value of M&A transactions rose significantly.
This mixed activity indicates that while global M&A has not fully rebounded from the slowdown triggered by the 2022 rate-hiking cycle, dealmakers are still pursuing larger transactions. The second quarter of 2024 saw a particular increase in USD 10 billion-plus M&A announcements outside the United States, contributing to the third consecutive quarter of year-over-year growth in total deal value.
Joe Mantone, lead author of the report at S&P Global Market Intelligence, highlighted the impact of these large transactions, stating, “A handful of large transactions served as a bright spot for M&A and IPO activity in the second quarter; while the overall number of transactions remains lackluster, the bigger deals are helping bring some growth to the overall value of transactions.”
Mantone also noted that “clarity around the political landscape and sustained rate-cutting cycle would certainly create optimism for M&A and IPOs heading into 2025.”
The report also pointed out key regional trends, with Europe’s M&A activity showing significant growth. The total value of M&A announcements in Europe increased by 65.4% quarter-over-quarter and 25.4% year-over-year in the second quarter, reaching USD 182.87 billion.
Doubts Revealed
S&P Global -: S&P Global is a company that provides financial information and analytics. They help people understand how businesses and economies are doing.
Mergers and Acquisitions (M&A) -: Mergers and Acquisitions, or M&A, is when companies buy or join with other companies. This can help them grow bigger and stronger.
Transaction value -: Transaction value is the total amount of money involved in buying or joining companies. It’s like the price tag for these big business deals.
Deal volumes -: Deal volumes refer to the number of business deals happening. Even if fewer deals happen, the total money involved can still be high.
USD 1.221 trillion -: USD 1.221 trillion is a very large amount of money. It’s 1,221 followed by nine zeros, showing how big these business deals are.
Quarter-over-quarter -: Quarter-over-quarter means comparing one three-month period to the previous three-month period. It’s a way to see how things change over time.
Joe Mantone -: Joe Mantone is a person who works at S&P Global. He shares important information about business trends.
Political clarity -: Political clarity means having clear and stable government policies. This helps businesses plan better and feel more confident about making deals.
Rate cuts -: Rate cuts are when the government lowers interest rates. This makes borrowing money cheaper, encouraging businesses to invest and grow.
IPOs -: IPOs, or Initial Public Offerings, are when a company sells its shares to the public for the first time. This helps the company raise money to grow.
