Business lending blueprint4/17/2024 ![]() In a McKinsey global survey on M&A, respondents from programmatic acquirers were more likely than others to say their organizations conducted divestitures in the past five years. Programmatic acquirers are not just acquisitive they also actively divest nonstrategic assets. ![]() Part of this success stems from actively managing portfolios. This programmatic approach outperformed all other M&A strategies, including organic growth, which actually destroyed value in the same period. This is especially true when companies need to adapt quickly.Ī jump in activity in the fourth quarter (of 2023) points to increasing optimism returning to the market.įor example, our latest analysis of the “Global 2,000”-the world’s largest global public companies-found that those making more than two small to midsized deals annually over ten years through 2022 delivered a median excess total shareholder return (TSR) of 2.3 percent. Organic growth-which never compared well with the most effective M&A strategy-pales further when significant strategic shifts are called for. First, with the business landscape experiencing seismic shifts-ranging from the rise of AI to the growing importance of sustainability and the emergence of a more demanding, tech-enabled consumer class-CEOs across industries tell us that M&A is a more vital strategic lever than ever. With curves like that, we were not surprised to hear a provocative question at a recent conference: “Is M&A dead?”Įxplore the full collection of articles from our Top M&A trends in 2024 report > M&A market durabilityĪ variety of factors supports the global M&A market’s durability. For example, in the US, the world’s busiest M&A market, activity dropped to its lowest proportion of S&P 500 market value in 20 years. A longer-term view shows the depth of M&A’s trough in 2023. This contrasts with other market benchmarks, such as the S&P 500, which climbed 24 percent last year on the wings of a handful of technology- and AI-driven stocks. 1 Market results reflect deals announced (and not withdrawn) over $25 million. And yes, few can remember a time that was more challenging for M&A.įor all of 2023, global M&A activity dropped 16 percent from a year earlier, to $3.1 trillion. ![]() Yes, they just weathered an exceedingly difficult year for dealmaking. Toughened by these swings and successive macroeconomic, geopolitical, and regulatory challenges, many dealmakers are approaching the year ahead not with trepidation, but with a healthy dose of optimism. From the pandemic-fueled rout in 2020 to 2021’s record-breaking recovery, followed by a steep decline in 2023, the global M&A market has offered something of a masterclass in volatility. M &A dealmakers have been on a wild ride. Top M&A trends in 2024: Blueprint for success in the next wave of deals (136 pages) ![]()
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