Global M&A Report 2024 - Notes

Overview

• Title: Global M&A Report 2024

• Publisher: Bain & Company

• Objective: Analyzes M&A performance and trends for 2023 and outlook for 2024.

Content Summary

Page 2: Methodology

• Research Basis: Secondary market research, financial analysis, interviews.

• Accuracy Disclaimer: Bain does not verify third-party provided data and does not guarantee its accuracy.

• Copyright: Any reproduction requires written permission of Bain & Company.

Page 3: Report Contents

1. Letter from Bain’s M&A Practice Leader (p. 5)

2. State of the Market (p. 6)

3. M&A Performance in 2023 (p. 6)

4. M&A Outlook for 2024 (p. 13)

5. Regulatory Environment (p. 24)

6. Industry-Specific Insights (p. 30)

7. Methodology and Key Contacts (p. 116)

Page 5: Leader's Overview

• Context: 2023 exhibited valuation disagreements between buyers and sellers.

• Key Data: Strategic deal multiples at decade lows; public market values are high.

• Focus: Navigating M&A challenges in a turbulent market.

Page 8: State of the Market

• Overview of M&A Trends:

  • Total market down 15% to $3.2 trillion; lowest in 10 years.

  • Buyers and sellers struggled with valuation discrepancies, high interest rates, and geopolitical risks.

  • Performance Variations: Tech sectors notably declined; healthcare and energy sectors bounced back.

Page 9: Insights on Deal Valuations

• There were over 27,000 strategic deals valued at ~$2.4 trillion.

• Frequent Acquirers: Those who engage frequently in M&A outperformed inactive peers.

• Valuation Gap: Persistent issue between buyer expectations and seller demands.

Pages 10-11: Challenges in M&A

• Buyer-Seller Valuation Gap: A critical barrier to executing deals.

• Regulatory Scrutiny: Increased oversight led to prolonged deal timelines.

Page 12-13: Industry-Specific Trends

• Healthcare: Increase in scope deals and divestitures.

• Tech Sector: Significant decline in deal value; emphasis on integrating product synergies.

Pages 14-16: Future of M&A

• 2024 Outlook: Expectation of an active year as companies shake off valuations from downturns.

• Corporate Responsibility: Companies need to redefine their M&A strategies for changing market dynamics.

Pages 34-39: Sector Highlights

• Automotive Sector: Shift towards electric vehicles driving M&A.

• Healthcare: Companies focusing on acquiring technologies that enhance capabilities.

Pages 42-47: Notable Trends in Various Industries

• Retail: Acquisition strategies focusing on new revenue streams and improved logistics.

• Telecommunications: Scale consolidations but regulatory scrutiny dampens growth.

Pages 62-65: Conclusion and Future Directions

• M&A Landscape: Continues to evolve with regulatory challenges, economic pressures, and shifts to digital.

• Focus Areas for 2024: Proactive sourcing and intrastate expansion.

Pages 108-110: Regional Dynamics

• Japan: Notable growth in M&A but a larger push needed to match global counterparts.

• Middle Eastern Sovereign Wealth Funds: Increasing investment in green technologies and Asian markets for diversification.

Key Takeaways

• Significant opportunity exists in 2024 as firms adapt to emerging market conditions and buyer-seller alignments.

• Continuous emphasis on innovative deals and strategic partnerships will be pivotal for competitive advantage.

• Firms must strengthen their due diligence and integration capabilities to succeed in a turbulent M&A environment.