M&A Deal Projections for 2024 to 2034
Investment Opportunities Throughout the Years
Inspired by George Tritch's Graphic Scale, I created the "Investment Opportunities Throughout the Years" chart to analyze and project M&A activities. This projection is based on insights and data from various credible sources, focusing on the top industries, countries, and future trends in M&A deals globally.
Top 3 Industries in M&A Activities Globally
Technology, Media, and Telecom (TMT)
Pharmaceutical and Biotechnology
Significant M&A activity in the pharmaceutical industry is primarily driven by the need to fill pipeline gaps caused by upcoming patent cliffs and to gain access to innovative biotech solutions (PwC).
Energy and Materials
Top 3 Countries with High M&A Activity Volume
United States
The U.S. remains the most active market for M&A, driven by a robust economic environment and a high number of megadeals, particularly in the technology and energy sectors (PwC) (Chambers Practice Guides).
China
Despite a slowdown, China remains a significant player in global M&A, especially in technology and industrial sectors. The country's focus on innovation and expansion into new markets continues to drive deal volume (Bain).
United Kingdom
The UK has shown resilience in M&A activities, particularly in financial services and technology sectors. Despite Brexit-related uncertainties, the UK continues to attract considerable M&A interest (PwC) (Chambers Practice Guides).
10-Year Projection for the Technology Sector in the United States (2024-2034)
Analyzing the past 10 years from 2014 to June 2024 provides a foundation for the projections. Here's a detailed year-by-year analysis and projection for the next decade based on historical trends and current data.
2014-2023 Analysis:
2014-2016: M&A activities were robust, driven by low interest rates and the need for technological advancements.
2017-2019: Continued growth with significant deals in AI, cloud computing, and cybersecurity.
2020-2021: Despite the pandemic, the tech sector saw increased M&A activities due to digital transformation and remote work technologies.
2022-2023: A decline in M&A activities due to rising interest rates and economic uncertainties, but significant deals in AI and cybersecurity persisted (PwC) (Bain) (Chambers Practice Guides).
2024-2034 Projection:
2024-2025: Recovery from previous economic uncertainties, with a focus on AI, cybersecurity, and cloud computing. M&A activities are expected to increase as companies adapt to new technologies.
2026-2027: Continued growth driven by advancements in AI and machine learning. Increased regulatory scrutiny may slow down some deals but will not significantly impact overall volume.
2028-2029: Consolidation in the tech sector as companies strive to achieve economies of scale. Major deals in AI and cybersecurity are anticipated.
2030-2031: A surge in M&A activities as new technologies emerge. Companies will seek acquisitions to stay competitive and innovative.
2032-2034: Sustained growth with a focus on sustainability and ESG factors. Companies will aim to acquire businesses that align with their sustainability goals.
By focusing on these strategic areas, the technology sector in the United States is poised to maintain its leadership in global M&A activities through 2034.
Resources
Bain & Company - Global M&A Report 2024
Bain & Company - Global M&A Report 2024
McKinsey & Company - M&A Insights
McKinsey & Company - M&A Insights
PwC - Global M&A Industry Trends
Deloitte - M&A Trends Report 2024
Deloitte - M&A Trends Report 2024