Market Insights Financial Corporate Finance

Mergers and Acquisitions - G7

The transaction value in the Mergers and Acquisitions market is projected to reach US$1.89tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -13.76% resulting in a projected total amount of US$1.63tn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$240.70m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in G7 countries is witnessing a significant uptrend in activity.

Customer preferences: Companies in G7 countries are increasingly looking to expand their market presence, diversify their product offerings, and achieve economies of scale through strategic mergers and acquisitions. Customers prefer deals that allow for synergies, cost savings, and enhanced competitiveness in the global market.

Trends in the market: In the United States, the M&A market is booming due to favorable regulatory changes and a strong economy, driving companies to pursue acquisitions to gain a competitive edge. In the United Kingdom, Brexit uncertainties have led to a surge in cross-border deals as companies seek to secure their positions in the European market. In Germany, the focus is on technology-driven acquisitions to enhance innovation and digital capabilities.

Local special circumstances: In France, the M&A market is influenced by government policies promoting domestic investments and fostering industry consolidation. Japanese companies are increasingly looking overseas for acquisitions to counter the effects of a shrinking domestic market. In Canada, the resource sector plays a significant role in driving M&A activity, with companies seeking to capitalize on natural resource opportunities.

Underlying macroeconomic factors: The low interest rate environment in G7 countries is making it easier for companies to finance M&A deals, leading to an increase in transaction volumes. Economic stability and growth prospects in these countries are also encouraging companies to pursue strategic acquisitions to expand their market presence and drive profitability. Additionally, the availability of capital from private equity firms and institutional investors is further fueling M&A activity in the G7 market.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.