Global M&A Trends: Fewer but Bigger Deals in 2024
Significant Increase in Deal Value Amid Decline in Transactions
The global mergers and acquisitions (M&A) landscape has shifted in 2024, with fewer deals being made, but those transactions are significantly larger in value. According to data from the London Stock Exchange Group (LSEG), the total value of global announced M&A deals in the first nine months of 2024 reached an impressive $2.3 trillion. This marks a 16% increase from the same period in 2023, making it the strongest nine-month start for deal-making since 2022. However, the number of deals fell to an eight-year low, with over 35,500 transactions recorded—a 20% decline year-over-year.
Leading Law Firms Maintain Dominance in M&A
Chicago-based law firm Kirkland & Ellis continues to dominate as the top legal advisor in M&A by deal value, working on 556 announced deals worth $295 billion globally. However, Skadden, Arps, Slate, Meagher & Flom edged out Kirkland as the top advisor when including deals withdrawn or called off. Skadden worked on 159 deals valued at $331 billion.
One of the most notable deals this year involved Skadden advising Mars Inc. in its $36 billion acquisition of Cheez-It maker Kellanova, where Kirkland advised Kellanova on the other side.
One of the most notable deals this year involved Skadden advising Mars Inc. in its $36 billion acquisition of Cheez-It maker Kellanova, where Kirkland advised Kellanova on the other side.
Other Top Players in the M&A Legal Space
Boston's Goodwin Procter secured the top spot by the number of deals, advising on 603 transactions worth $91 billion. Latham & Watkins also had a strong showing, advising on 458 global deals valued at $273 billion, placing second in deal value and third in transaction volume. Latham’s notable deals include advising SRS Distribution in its acquisition by Home Depot and Skydance Media's acquisition of Paramount Global, a major player in Hollywood.
Market Conditions and Anticipated Slowdown
Despite the robust figures, M&A experts remain cautious about the market. Mark Bekheit, global vice chair of Latham & Watkins’ M&A practice, emphasized that the market is still facing "headwinds," particularly as U.S. government agencies continue to scrutinize deals. Bekheit also mentioned that the U.S. Federal Reserve's recent interest rate cut could influence market dynamics, but warned that companies may delay major deals until after the U.S. elections in November.
Other M&A partners share similar expectations, noting that geopolitical events and the outcome of the elections could influence market behavior heading into the final quarter of 2024 and early 2025. Nevertheless, dealmakers remain optimistic that significant M&A activity will persist through the end of the year.
Other M&A partners share similar expectations, noting that geopolitical events and the outcome of the elections could influence market behavior heading into the final quarter of 2024 and early 2025. Nevertheless, dealmakers remain optimistic that significant M&A activity will persist through the end of the year.
Looking Ahead: A Strong Fourth Quarter Expected
Despite the uncertainty, many legal professionals in the M&A sector are confident in the resilience of the market. Kirkland & Ellis' dealmaker Michael Weisser commented that the M&A pipeline remains "robust," though the upcoming U.S. elections and geopolitical factors could play a crucial role in determining the market’s future trajectory. David Barkus of Holland & Knight also expects a boost in deal activity, regardless of the election’s outcome, as businesses seek to adapt to the evolving economic landscape.
As 2024 heads into its final quarter, the M&A market is set for a potentially strong finish, fueled by mega-deals and optimism among top industry players.
As 2024 heads into its final quarter, the M&A market is set for a potentially strong finish, fueled by mega-deals and optimism among top industry players.
