Dealmaker’s Digest: A Top 10 Bulletin – January 2025 – Corporate and Company Law

In Dealmaker’s Digest, read the top 10 latest developments
in global transactions. We offer insights into M&A activity
across industries and borders. To receive our M&A thought
leadership, please join our mailing list.

Key Takeaways

• Annual global M&A activity in 2024
  rebounded significantly from 2023’s sluggish deal landscape.
  Aggregate value of transactions ($100m+) increased 14% across all
  buyer types, with sponsor-led deals jumping 36%
  year-over-year.




• Crossborder transactions played a key role for
  dealmakers in 2024. Inbound U.S. transactions, totaling nearly
  $350B, jumped 21% from 2023, while outbound U.S. activity rose 18%
  (surpassing $430B for the year).




• More mega-deals were struck in 2024 compared
  with 2023; more than 25 U.S. transactions exceeded $10B in value, a
  23% increase.

Global M&A Activity Update

1. Deal Value Trends

Aggregate global monthly deal
value¹ decreased moderately in December, down about $20
billion (6%) from November. Total monthly deal value decreased 15%
year-over-year.

Transactions involving strategic
buyers in December also declined in value (7%) from November.
Strategic deal value in December dropped 25% year-over-year.

Financial, or sponsor, buyer
transactions in December held steady, decreasing only 4% from
November, rounding out a comparably steady Q4 for sponsor
acquisitions. Sponsor buyer deal value increased 7%
year-over-year.

2. Deal Count Trends

Global deal count held steady
from November to December, ticking up 4%, and rounded out the most
active quarter by count for the year. Monthly deal count increased
16% year-over-year.

Strategic buyer deal count in
December increased moderately, up 6% from November and 11%
year-over-year.

Sponsor buyer deal count in
December remained steady month-over-month, decreasing just 1% from
November. However, sponsor deal count rose dramatically (28%)
year-over-year.

3. Annual Global M&A Activity (Transactions
$100M+)

• M&A activity increased in 2024 by nearly all metrics as
  dealmakers seized opportunities amid more favorable transacting
  conditions, including consecutive interest rate cuts and tampered
  inflation.




• Aggregate value of transactions $100m+ increased significantly
  in 2024 compared with 2023, up 14% across all buyer types.
  Aggregate value of sponsor buyer deals led the increase with a 36%
  jump, while strategic acquisitions held steady, up just 4%.




• The number of transactions valued at $100 million or greater
  increased 6% globally in 2024 vs 2023. Sponsor acquisitions jumped
  24% by count, while acquisitions by strategic buyers held steady
  (declining a marginal 3%).




• The uptick in 2024 M&A activity was a noticeable rebound
  following consecutive declines in dealmaking since 2021’s $6.4
  trillion record.

4. Annual U.S. Crossborder Activity

• Inbound U.S. activity in 2024 jumped 21% by deal value from
  2023 and held steady by deal count (declining just 3%). The value
  of U.S. companies acquired by non-U.S. buyers in 2024 totaled
  nearly $350 billion.




• Outbound activity in 2024 jumped 18% by deal value from 2023
  and remained stable by deal count, declining just 3%. The value of
  non-U.S. companies acquired by U.S. buyers in 2024 totaled over
  $430 billion.




• Canada-based acquirers drove the most inbound transactions in
  2024 (287), followed closely by the UK (278). Japan-based buyers
  took third at 147 transactions.




• U.S. acquirers most frequently looked to targets in the UK
  during 2024 (572), with Canada (382) and Germany (198) rounding out
  the top three ex-U.S. target countries.

Active M&A Industries (U.S. Targets)

5. By Deal Count

• The software industry once again topped the list of U.S.
  M&A activity by deal count in December, continuing its streak
  as the leading industry by volume and rounding out a full year at
  number one.




• Services industries also remained active, with financial
  services and other professional services again rounding out the top
  three sectors in December by deal count.

6. By Deal Value

• Financial services was the leading U.S. industry by deal value
  in December, with two of the five largest deals of the month,
  together totaling more than $25 billion in deal value.




• Media was the second most active by deal value in December,
  bolstered by Omnicom’s blockbuster acquisition of Interpublic.
  Software targets were the third most active, at just over $15
  billion in deal value.

December Blockbuster Deals

7. Largest U.S. Media Deal

Omnicom Group has agreed to acquire The
Interpublic Group of Companies, Inc. in an all-stock
transaction valued at approximately $13.75
billion.

8. Largest U.S. Asset Management Deal

BlackRock, Inc. has agreed to
acquire HPS Investment Partners, LLC in an
all-stock transaction valued at approximately $12
billion.

9. Selected Annual Highlights

More than 35 transactions exceeding $10 billion were announced
globally during the year, demonstrative of the comparably favorable
market conditions following tempered activity in 2023.
Transformative deals were struck in a variety of sectors, including
those highlighted below.

10 .2024 M&A Activity Recap

A snapshot of 2024 metrics, and how they stack up against
2023.

Footnotes

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.