McKinsey – M&A Trends, 2024

In the coming year, dealmakers are expecting significant changes in the M&A market after experiencing a rollercoaster ride in recent years. Despite a 16% drop in global M&A activity in 2023, dealmakers remain optimistic and see M&A as a vital strategic lever in a rapidly evolving business landscape. Companies that engage in frequent small to midsized deals have outperformed in terms of total shareholder return, showing the effectiveness of a programmatic approach to M&A. These successful acquirers actively manage their portfolios, including divesting nonstrategic assets. The performance gap between programmatic acquirers and companies focusing on organic growth has widened during the COVID-19 years, highlighting the strength of a strategic and consistent M&A approach. Despite lower M&A volumes in recent years, the case for programmatic M&A remains strong, with dealmakers who pursue more deals consistently achieving higher returns.