Bain – M&A Midyear Report, 2024

In the first half of 2024, companies are adapting dealmaking strategies to fit the economic environment with a focus on cost synergies. Strategic M&A activity has remained steady, with the energy and tech sectors seeing the most action. Energy companies are shifting towards scale consolidation deals, while tech companies are engaging in growth-oriented scope deals. Companies are prioritizing both cost synergies and growth in their deals, with a trend towards stock-only deals to avoid debt financing. Strategic deal valuations have slightly increased, suggesting a possible pricing bottom. The global market for strategic M&A has shown similar activity to the second half of 2023, with value rising by 24%. Private equity and venture capital are showing signs of improvement. The Americas and Europe/Middle East/Africa regions are seeing a return to dealmaking, while Asia-Pacific is experiencing a downturn. Executives are willing to pay for strong businesses that align with strategic goals, but skepticism remains regarding asset quality. The IPO market is unstable, and PE holding periods are lengthening as public market valuations remain high compared to deal valuations.