Global M&A Deals Rise While IPOs Slow Down in Q3 2024
According to the Q3 2024 Global M&A and Equity Offerings Report by S&P Global Market Intelligence, global merger and acquisition (M&A) deals and Initial Public Offering (IPO) activities are showing different trends. M&A deal announcements have increased for the second quarter in a row, marking a 7.3% year-over-year rise, breaking a 10-quarter decline streak. This growth hasn’t been seen since late 2020.
Joe Mantone, the lead author of the report, noted that signs of recovery in the dealmaking landscape are emerging. He mentioned that further rate reductions by the Federal Reserve could lower acquisition financing costs, potentially boosting optimism for 2025. However, the IPO market is facing challenges, with a 33% drop in the total value of equity issues to USD 65.63 billion from the previous quarter, and a 21% decline compared to the same period last year. The number of equity issuances fell to 788, a decrease from both the second quarter of 2024 and the third quarter of 2023.
The report provides insights into global M&A and equity issuance trends, highlighting sector-specific developments.
Doubts Revealed
M&A -: M&A stands for Merger and Acquisition. It is when two companies combine to form one or when one company buys another. This is often done to grow bigger or to enter new markets.
IPO -: IPO stands for Initial Public Offering. It is when a company sells its shares to the public for the first time. This helps the company raise money to grow and expand.
Q3 2024 -: Q3 2024 refers to the third quarter of the year 2024. A quarter is a three-month period, so Q3 includes July, August, and September.
S&P Global Market Intelligence -: S&P Global Market Intelligence is a company that provides financial information and analysis. They help businesses understand market trends and make informed decisions.
Equity Issuances -: Equity issuances are when companies sell shares to raise money. This can be done through IPOs or by selling more shares to existing shareholders.
Stock Market Volatility -: Stock market volatility means that the prices of stocks are changing a lot and very quickly. This can make investing in the stock market risky because prices can go up or down suddenly.