Mergers & Acquisitions (M&A) activity in 2024 showed a mixed recovery. Deal value rose, large transactions gained ground, and technology played a bigger role in strategy and execution. Yet deal volume remained below historic norms, private equity (PE) pulled back in key regions, and regulatory pressure intensified.
This article breaks down the numbers across global and regional markets, examines deal characteristics, and highlights how economic shifts, AI adoption, and geopolitical risks are shaping today’s M&A environment.
In this article:
Global M&A Statistics
1. 2024 saw moderate returns.
Despite notable performance gains in some regions, global M&A activity in 2024 faced continued headwinds, resulting in moderate returns. Total deal value rose by 12%, reaching $3.4 trillion. (McKinsey)
2. The volume of large deals increased in 2024.
While the overall number of deals declined, the volume of large transactions increased—deals valued at $2 billion or more rose by 20% year-over-year, driven by high-profile announcements like Mars’s pending $40 billion acquisition of Kellanova and Synopsys’s $35 billion acquisition of Ansys. (Morrison Foerster)
3. M&A activity as a share of Gross Domestic Product (GDP) remains low.
Despite typical market cycles, global M&A activity as a share of nominal GDP has remained near 30-year lows over the past three years. In 2024, the market saw a modest year-over-year increase—13% in deal value and 9% in volume—yet still marked the second-lowest levels in both metrics in over a decade. (Bain & Company)
4. Private equity activity in Europe, Middle East, & Africa (EMEA) saw a significant decline.
In 2024, private equity accounted for $243 billion—or 29%—of M&A activity in EMEA, a sharp decline from $483 billion (32%) in 2021. (McKinsey)
5. PE activity in the Asia-Pacific region also declined.
Private equity activity in the Asia–Pacific region totaled $126 billion in 2024, representing 16% of M&A volume—down from $279 billion (21%) in 2021. (McKinsey)
6. Deals over $25 million and transactions both increased from 2023 to 2024.
In 2024, the global value of deals over $25 million rose 12% to $3.4 trillion (up from $3.1 trillion in 2023), while the number of companies changing hands increased 8%, reaching 7,784 transactions compared to 7,206 the previous year. (McKinsey)
7. Average global deal value also increased slightly.
Average global deal value rose 4% in 2024, reaching $443 million (up from $424 million in 2023), as improving macroeconomic conditions and growing resilience among dealmakers helped offset ongoing geopolitical and political uncertainty. (McKinsey)
8. 2024 saw a decline in megadeals from 2023.
Megadeals—transactions exceeding $10 billion—declined by 6% in 2024, dropping to $664 billion from $703 billion the previous year. The average size of these large deals also fell, from $20.1 billion to $18.4 billion. (McKinsey)
9. Midsize deals accounted for nearly half of M&A activity in 2024.
Midsize deals—valued between $1 billion and $10 billion—were the most favored among dealmakers in 2024, making up 46% of global M&A activity, up from 41% in 2023. (McKinsey)
10. Nearly 59% of confident CEOs intend to pursue transactions.
According to EY Parthenon’s Confidence Index, nearly 59% of the most optimistic CEOs—those confident in growth, talent, inflation, and investment—plan to pursue a transaction within 12 months of September 2024, compared to just 16% of the least confident CEOs. (EY Parthenon)
11. Total M&A transaction volume is in the trillions.
The global M&A market is projected to reach a transaction value of $2.41 trillion in 2025. (Statista)
U.S., the Americas, and North America Statistics
1. S&P increased in 2024.
The S&P 500 posted a robust 24% gain in 2024, marking one of its strongest annual performances in recent years. This surge was driven by a combination of easing inflation, resilient consumer spending, improved corporate earnings, and growing investor confidence in the Federal Reserve’s soft-landing strategy. (McKinsey)
2. The U.S. stock market now accounts for over 60% of global stock market capitalization.
This concentration reflects the strength and scale of U.S.-based companies, particularly in high-growth sectors like technology, healthcare, and consumer services. (McKinsey)
3. In 2024, private equity contributed $398 billion to M&A volume in the Americas.
This represents 22% of total deal activity—a sharp decline from $865 billion (28%) in 2021. This drop reflects broader headwinds facing the PE sector, including tighter credit conditions, elevated interest rates, and a more cautious investment climate. (McKinsey)
4. New U.S. regulatory requirements are set to take effect in 2025.
The changes aim to increase scrutiny of large and potentially anticompetitive deals, reflecting a broader shift toward more rigorous oversight in the M&A landscape.
As a result, dealmakers will need to plan for longer timelines, more robust documentation, and closer coordination with legal and compliance teams. (McKinsey)
5. In 2024, the value of deals exceeding $25 million in the Americas rose by 12%.
This growth, an increase to $1.8 trillion in 2024 from $1.6 trillion in 2023, highlights a rebound in mid- to large-cap dealmaking, driven by improved economic stability, stronger corporate balance sheets, and renewed investor confidence across key sectors. (McKinsey)
6. Deal volume in the Americas increased by 9% in 2024, rising to 2,763 transactions from 2,524 in 2023.
Alongside this uptick, the average deal size also grew modestly—from $631 million to $648 million—indicating a steady appetite for strategic transactions despite ongoing macroeconomic uncertainty.
The rise in both volume and value signals renewed momentum in the M&A market, particularly among companies seeking scale, innovation, and market expansion through acquisitions. (McKinsey)
7. Deal value in North America rose 9% year-over-year in 2024, reaching $1.7 trillion.
This growth was fueled by a 27% surge in technology deal value and a 39% increase in sponsor-led buyouts, signaling renewed confidence among both strategics and private equity firms.
The utilities and energy sector saw particularly strong momentum, with M&A value soaring 80% to $137 billion, driven by the transition to cleaner energy sources, infrastructure modernization, and strategic consolidation across the sector. (Morrison Foerster)
8. Since 1985, more than 325,000 mergers and acquisitions have been announced in the United States.
These deals represent a combined disclosed value of nearly $34.9 trillion. This long-term activity underscores the central role of M&A as a strategic tool for growth, consolidation, and innovation across industries. (IMAA)
9. Healthcare has led all industries in M&A activity by transaction value.
The healthcare industry accounts for 14.2% of global deal volume since 1985. With a cumulative deal value of $3.29 trillion, the sector's dominance reflects ongoing consolidation, rising demand for innovation, and strategic investments in biotechnology, pharmaceuticals, and healthcare services. (IMAA)
10. High technology leads all industries in the number of M&A transactions.
The high tech industry accounts for nearly one-fifth (19.9%) of deal volume in the U.S. With over 38,350 transactions since 1985, the sector’s deal activity reflects rapid innovation cycles, fierce competition for talent and IP, and a continuous drive for digital transformation across industries. (IMAA)
11. Chinese acquirers outspend the U.S. on acquisitions.
Between 1985 and 2018, companies from China and Hong Kong announced over 1,849 acquisitions in the United States, totaling $296.4 billion in deal value. Since 1991, Chinese firms have invested $166 billion more in U.S. acquisitions than U.S. companies have invested in China. (IMAA)
12. U.S. companies have completed more transactions in China.
Since 1991, U.S. companies have announced over 2,355 acquisitions in China and Hong Kong, with a combined deal value of $130.4 billion. While this reflects strong investment interest in the region, it remains significantly lower in value compared to Chinese outbound M&A activity in the U.S. over the same period. (IMAA)
13. CEOs prioritize product and process innovation.
According to the January EY-Parthenon CEO Survey, 51% of U.S. CEOs identified improved product and process innovation as one of the most critical outcomes when evaluating potential acquisitions.
This highlights a growing strategic emphasis on using M&A to drive innovation and enhance competitive advantage, rather than solely focusing on scale or cost synergies. (EY Parthenon)
14. CEOs expect an increase in megadeal activity.
The January 2025 EY-Parthenon CEO Survey revealed that 58% of U.S. CEOs expect an increase in megadeal activity—transactions valued at $10 billion or more.
While overall dealmaking remains cautious, this finding suggests that large-scale strategic moves are back on the radar for some executives. (EY Parthenon)
M&A Deal Characteristics
1. In 2024, average private equity exit hold times reached a record high of 8.5 years.
That’s more than double the 4.1-year average seen in 2007. This trend reflects a shift toward longer value-creation cycles, which is driven by market volatility, tighter credit conditions, and a more disciplined approach to timing exits for optimal returns. (McKinsey)
2. Deal activity in the tech sector surged in 2024.
The technology sector recorded $640 billion in M&A activity in 2024, marking a 16% increase over 2023. This surge was fueled by continued investment in AI, cloud infrastructure, cybersecurity, and digital transformation initiatives, as companies pursued strategic acquisitions to stay competitive in a rapidly evolving tech landscape. (Morrison Foerster)
3. Life sciences, on the other hand, saw a decline.
Although life sciences M&A deal value declined in 2024 compared to the previous year, healthcare remained the second-largest sector for global M&A, accounting for 10% of total deal value. (Morrison Foerster)
4. Financial sponsors have an optimistic outlook.
According to Morrison Foerster’s 2024 Tech M&A Survey, sponsor sentiment remained strong heading into 2025, with 57% of private equity respondents expecting an increase in deal volume over the next 12 months. (Morrison Foerster)
5. AI is a driving force behind potential M&A deals.
According to a study by Dentons, nearly two-thirds (64%) of business leaders plan to pursue M&A within the next 12 months to strengthen their AI capabilities.
This number is expected to rise to 70% over the next three years, reflecting a long-term strategic shift toward acquiring AI talent, tools, and infrastructure as companies race to stay competitive in an increasingly digital and automated landscape. (Dentons)
6. Non-tech buyers account for one-third of acquisitions.
Over the past six years, non-tech companies have accounted for one in every three strategic tech acquisitions valued at over $100 million.
This trend also underscores how businesses across industries are turning to M&A to accelerate digital transformation, acquire cutting-edge capabilities, and remain competitive in a tech-driven economy. (Bain & Company)
7. In 2024, scale deals made up 59% of the largest strategic transactions.
That’s the highest share recorded since 2015. This surge highlights a renewed focus on consolidation, market share expansion, and cost synergies. (Bain & Company)
8. Smaller deals continue to form the backbone of M&A activity.
In 2024, transactions valued at under $1 billion accounted for 95% of all deals, underscoring the dominance of mid-market and lower-middle-market activity.
Notably, the number of sub-$1 billion deals increased for the first time in four years, signaling renewed confidence among acquirers pursuing targeted, strategic growth despite ongoing market uncertainty. (Bain & Company)
9. Energy and natural resources led M&A activity in 2024, driven by a wave of industry consolidation.
In the first 11 months alone, the sector saw more than 10 megadeals—each valued over $5 billion—highlighting the continued push for scale, portfolio optimization, and energy transition strategies amid evolving market dynamics and geopolitical pressures. (Bain & Company)
10. Big-name deals made waves in 2024.
High-profile deals—like Alimentation Couche-Tard’s $58 billion bid for Seven & I in retail and the $20.3 billion Verizon-Frontier merger in telecommunications—also fueled gains in their respective industries in 2024. (Bain & Company)
11. Big deals are taking longer to close.
For transactions over $2 billion, the average time from signing to closing jumped 11% between 2018 and 2022—now sitting at 191 days. (BCG)
12. $10 billion+ transactions are taking even longer.
From 2018 to 2022, big deals over $2 billion started taking longer to close in both the US and Europe. The biggest transactions—those over $10 billion—took about 27% longer to wrap up compared to deals in the $2–10 billion range. (BCG)
13. More M&A deals are missing closing deadlines.
Around 40% of deals didn’t close on time, missing the timeline set in the deal documents. And of those delayed deals, nearly two-thirds needed three extra months or more to get across the finish line. (BCG)
14. Acquisitions are increasingly aimed at boosting product and process innovation.
More acquisitions are zeroing in on product and process innovation, with tech-targeted deals seeing a 90% year-over-year increase in January 2025. (EY Parthenon)
Impact of Economic Conditions, Regulations, and Geopolitical Factors on M&A
1. The Americas accounted for nearly three-fourths of the largest deals in 2024.
Buoyed by strong corporate profits, easing inflation, a stabilizing labor market, and rising consumer confidence, dealmakers in the Americas closed 14 of the 20 largest global deals in 2024.
In fact, 15 of those 20 megadeals involved targets based in the Americas, making the region the top draw for global M&A activity. (EY Parthenon)
2. Lower interest rates sparked PE interest.
Interest rates dipped just enough in 2024 to reignite interest from private equity and other financial investors. As a result, deal value for this group jumped 29% year over year, signaling a return to momentum. (Bain & Company)
3. Pivoting has become a defining trait of today’s dealmaking approach.
In a Deloitte survey, 88% of corporate respondents and 81% of private equity respondents said they’ve changed their deal targeting strategies over the past two years. The takeaway? Being able to pivot is now a critical skill in today’s M&A landscape. (Deloitte)
4. The regulatory landscape has a strong influence.
In a Bain & Company survey of over 300 M&A professionals, nearly half of global executives said regulatory concerns influenced the kinds of deals they pursued in 2024. (Bain & Company)
5. Corporations and private equity firms are doubling down on tech and cross-border strategies.
Nearly all (97%) of respondents to Deloitte’s survey have adopted tools like Generative AI and advanced analytics, while 85% have cross-border deals high on their agendas for the coming year.
These shifts reflect a broader move toward more agile, tech-driven M&A models, with foreign deals focused on market expansion, access to innovation, and supply chain resilience. (Deloitte)
6. Geopolitical conflict is reshaping global trade strategy.
New tariffs and heightened supply chain risks are pushing companies to rethink their global footprints, prompting some to shorten supply chains or nearshore key operations.
According to research conducted by PwC, 84% of Industrials & Services CEOs anticipate at least some exposure to geopolitical conflict, such as trade disputes and interstate tensions, with 25% reporting they are highly or extremely exposed. (PwC)
7. Public-to-private activity rises.
Financial sponsors have been especially active on the buy side, with take-private transactions leading the charge. The value of these deals surpassed $200 billion in 2024, making it a standout year for public-to-private activity.
Returning to private ownership gives a public company the freedom to focus on long-term growth and strategic improvements without the constant pressure of meeting public shareholders’ expectations. (Morgan Stanley)
8. Deal values climbed across key sectors.
In 2024, several industries—including entertainment and media, technology, aerospace and defense, and financial services (banking, insurance, and wealth management)—saw a rise in deal values, fueled by a number of significant megadeals. (PwC)
10. However, not all sectors saw gains.
However, not every sector followed suit. Pharma and life sciences deal values dropped 36%, driven by a sharp decline in megadeals (down from ten in 2023 to just four in 2024). The oil and gas sector also saw a decrease, largely due to the absence of two $50+ billion deals that boosted 2023’s totals. (PwC)
Digital Transformation and Technology Innovation in M&A
1. Generative AI gains ground in dealmaking.
Around 20% of surveyed companies are currently using generative AI in their M&A activities, with more than half expecting to adopt the technology by 2027.
Among the most active acquirers, adoption is even higher: 36% are already leveraging generative AI to enhance their dealmaking processes. (Bain & Company)
2. Private equity leads in generative AI adoption.
Private equity firms are emerging as early adopters of generative AI. Over 60% of those interviewed by Bain & Company are already using at least one tool to enhance deal sourcing, target screening, or due diligence. (Bain & Company)
3. Generative AI streamlines M&A workflows.
Nearly 80% of companies leveraging generative AI in their M&A processes report a significant reduction in manual effort, highlighting the technology’s impact on efficiency and productivity. (Bain & Company)
4. At the same time, generative AI risks are becoming dealbreakers.
As AI reshapes deal dynamics, 70% of private equity firms have walked away from a deal after identifying that generative AI could negatively impact the target’s business model. (Bain & Company)
5. Economic indicators strongly predict M&A activity trends.
Over the past 20 years, private equity M&A activity has shown a strong 82% correlation with key economic indicators such as GDP growth, corporate profits, bond spreads, and interest rates.
Corporate M&A activity also tracks closely (about 65% correlation) when these same indicators are combined with CEO confidence levels, highlighting their strong predictive value for dealmaking trends. (EY Parthenon)
Frequently Asked Questions
What are the most active sectors for M&A activity?
Technology, healthcare, financial services, and energy are consistently among the most active sectors. These industries often see high deal volume due to innovation, consolidation, and strategic growth opportunities.
What is a cross-border M&A deal?
A cross-border M&A deal involves a transaction between companies based in different countries. These deals are typically driven by goals like market expansion, access to new talent or technology, and global diversification.
What are mega-deals in M&A?
Mega-deals refer to large-scale mergers or acquisitions, usually valued at $5 billion or more. These deals often reshape industries, involve significant regulatory scrutiny, and can impact global markets.
How do economic conditions affect M&A activity?
Economic conditions heavily influence M&A. In times of growth, companies pursue deals to expand. During downturns, distressed assets may become attractive targets, but uncertainty and tighter credit can slow dealmaking.
What role do regulatory bodies play in M&A?
Regulatory bodies review mergers and acquisitions to ensure they don’t harm competition, violate antitrust laws, or pose national security risks. Their approval is often required for deal completion, especially in large or cross-border transactions.
How has technology impacted M&A activity?
Technology has transformed M&A by enabling faster deal analysis, better data-driven decision-making, and more efficient due diligence. It’s also created new acquisition targets, especially in software, AI, and cybersecurity.
Final Thoughts
M&A is shifting—fewer but larger deals, longer closing timelines, tighter regulations, and a growing reliance on AI and data. Firms need speed, structure, and visibility to compete.
DealRoom’s M&A platform was built for this. The platform replaces fragmented tools with a single workspace built around modern deal workflows—the due diligence process, collaboration, and post-merger integration, all in one place.
As dealmaking gets more complex, DealRoom keeps teams aligned and moving. Request a DealRoom demo today to learn more.
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