The global M&A landscape in 2023 and 2024 was subdued; however, 2024 showed pockets of growth, with some countries recording significant increases in deal volume. Canada stood out with a remarkable 59% rise in M&A activity compared to 2023. Conversely, regions such as the Nordics, Benelux, and China experienced lower volumes than the prior year.

Amid these shifts, notable developments emerged. The largest food industry deal in a decade took place with Mars’ bid for Kellanova. Additionally, tech M&A saw a 16% increase in volume compared to 2023, demonstrating resilience in a challenging market. Still, overall deal volume and count remain well below the levels seen between 2018 and 2021. North America continues to dominate global M&A, accounting for 50% of activity, with tech leading the way by sector, followed by healthcare and finance.

According to Goldman Sachs, companies are prioritizing structural simplification, signalling a move away from sprawling conglomerates spanning multiple verticals. Divestitures by publicly listed entities have become increasingly popular as a means to unlock value for shareholders. Activism is also driving spin-offs, alongside the realization that specialized investors – whether by geography or sector – are often willing to pay a premium for certain foreign investments compared to local public shareholders.

In the private equity space, nearly half of all portfolio companies are now over five years old. As funds look to return cash to investors, there is growing pressure to dispose of these holdings at favourable valuations. If market conditions improve and valuations rise, we can expect a wave of exits in the near term.