Global M&A activity up 15% in 2024 led by surge in large deals: WTW

In 2024, the number of global mergers and acquisitions (M&A) deals valued over $100 million increased by 15%, rising from 619 in 2023 to 710, according to WTW’s Quarterly Deal Performance Monitor (QDPM).

This growth was mainly driven by a surge in large transactions (worth between $1 billion and $10 billion), with 99 deals completed in the second half of 2024, a 36% increase compared to the same period in 2023.

For the full year, large deals rose by 21%, reaching 162 deals in 2024 compared to 134 in 2023. Additionally, 15 megadeals (worth over $10 billion) were completed globally last year, up from 11 in 2023.

Jana Mercereau, Head of Europe M&A Consulting at WTW, stated, “Buyers have endured a prolonged period of volatility and challenges on multiple fronts. Yet the underlying drivers of strategic growth and desire for new capabilities persist, with pent-up demand and strong balance sheets set to provide a tailwind for more M&A in 2025.”

In North America, M&A activity grew 14% year-over-year, with 361 deals completed in 2024 compared to 317 in 2023. Europe saw a 32% increase, from 117 to 155 deals, while Asia Pacific had 163 deals, up from 155 in 2023.

Despite strong equity returns, 37% of companies involved in M&A deals outperformed the broader market in terms of share price performance. However, the overall performance of completed acquisitions valued over $100 million showed that most acquirers underperformed the market by -10.9 percentage points in 2024.

In the second half of 2024, Europe was the only region to resist the negative trend, recording a positive performance of +0.7 percentage points, providing a boost for dealmakers in the region expecting a busy year ahead. In contrast, buyers in North America and Asia Pacific underperformed their regional indices by -8.7 and -11.2 percentage points, respectively.

Mercereau added, “Financing conditions have improved, with interest rates stabilising and a new U.S. administration signalling looser regulatory scrutiny. However, getting complex M&A transactions right in 2025 will remain challenging. Dealmakers face ‘known unknowns’ including the risk of new tariffs and policies refuelling inflation, affecting supply chain stability and consumer prices.

“The tremendous growth and influence of private equity on M&A will also increasingly impact on buying behaviour. Under pressure to deploy trillions in dry powder, PE firms will use their knowledge of performing complex deals to drive aggressive timelines, forcing corporate buyers to compete with greater efficiency and agility in pursuit of closing strategic deals.”

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