Sectors Poised for M&A Growth

As we move into the second half of 2024, M&A activity is rebounding. For business owners considering selling, this resurgence presents unique opportunities and strategic considerations. Coupled with my own observations, I spent some time looking at some of the top M&A outlook reports out there for 2024 from expert sources like EY-Parthenon, PwC, AlphaSense, and The National Law Review. 𝘏𝘦𝘳𝘦'𝘴 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘬𝘯𝘰𝘸: 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐛𝐨𝐮𝐧𝐝: 2024 is seeing a 20% increase in U.S. deal volume, driven by sectors like technology, energy, and life sciences (EY US) (PwC). Companies are turning to M&A for growth in a low-growth environment. 𝐊𝐞𝐲 𝐓𝐫𝐞𝐧𝐝𝐬: - 𝘛𝘦𝘤𝘩𝘯𝘰𝘭𝘰𝘨𝘺 is leading the way in M&A with acquisitions in AI, cybersecurity, and cloud capabilities to drive innovation (EY US). - 𝘌𝘯𝘦𝘳𝘨𝘺 is focusing on consolidation and sustainable solutions, with high-profile deals strengthening core portfolios (AlphaSense). - In 𝘓𝘪𝘧𝘦 𝘚𝘤𝘪𝘦𝘯𝘤𝘦𝘴, pharma companies are acquiring biotech firms to replenish pipelines due to patent cliffs (PwC). 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬: - 𝘝𝘢𝘭𝘶𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘋𝘦𝘢𝘭 𝘚𝘵𝘳𝘶𝘤𝘵𝘶𝘳𝘦𝘴: Sellers need to understand market valuations and structure deals effectively to attract buyers. - 𝘙𝘦𝘨𝘶𝘭𝘢𝘵𝘰𝘳𝘺 𝘌𝘯𝘷𝘪𝘳𝘰𝘯𝘮𝘦𝘯𝘵: Heightened antitrust scrutiny and ESG considerations are critical (EY US) (The National Law Review). 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲: Private equity activity is rebounding, especially in technology and energy sectors, creating more opportunities for sellers (EY US). 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: The M&A rebound in 2024 offers promising opportunities for sellers. Staying informed on trends, valuations, and regulatory factors is key to achieving optimal outcomes. You can find links to the articles supporting my observations in the comments. #mergers #acquisitions #founders #entrepreneurs #deals

Interesting perspective from Evaluate on 2024 deal making so as to get some perspective on key therapeutic focus and insights on deal making. In Biopharma, total potential deal value (PDV) for alliances reached $191.9B across 690 deals and despite a slight dip in deal volume, the aggregate value was up $5B from 2023. The average deal value rose 4% to $671M. Oncology led the way, accounting for 36% of all partnerships and 40% of total PDV, with $76.8B in value. Arrowhead Pharmaceuticals and Sarepta Therapeutics’ rare disease partnership was worth $12.8B and underscored continous appetite for innovation. On the M&A front, Biopharma saw $79.4B in activity from 140 deals, with 26 exceeding $1B. While this was about half of 2023 dollar total, deal volume actually increased 4%. Novo Holdings’ $16.5B acquisition of Catalent was the year’s largest, showing how strategic manufacturing assets remain in demand. Biopharma financing was robust: $88.6B raised across 1,056 deals, up 19% in value and 13% in volume year-over-year. The average financing deal hit $83.9M, a 6% increase. IPO activity also rebounded, with 43 Biopharma IPOs raising $6.3B. Galderma’s $2.2B offering was the largest, highlighting renewed public market interest. In Medtech, financing hit $14.8B and M&A value soared 32% to $35.9B. This was driven by 7 $1B+ acquisitions. Johnson & Johnson’s $13.1B buyout of Shockwave Medical led the pack, reinforcing the value of breakthrough device technologies. Device M&A alone doubled to $33.4B, and diagnostics financing climbed to $3.8B from 89 deals. Medtech IPOs also surged as 17 companies raised $1.1B, led by Tempus AI’s $382M offering, reflecting the sector’s growing intersection with data and AI. In summary: ·Oncology and rare diseases continue to attract the largest deals and investments. ·There’s a clear trend toward higher average deal values, even as the number of transactions stabilizes or dips. ·M&A is increasingly focused on strategic assets such as manufacturing, data, and nextgen platforms. ·Venture and public market funding are rebounding, especially for companies with differentiated pipelines or tech-enabled solutions. ·Medtech is catching up fast, with both financing and M&A activity accelerating in devices and diagnostics. Given these trends, I’ll be watching for continued consolidation, especially in high-growth therapeutic areas and platform technologies. The surge in IPOs and venture rounds suggests investor confidence is returning, but selectivity remains high. Focusing on innovation, strategic partnerships, and scalable platforms will be key to capitalizing in 2025. #BiopharmaDeals #MedtechTrends #Oncology #MergersAndAcquisitions #VentureCapital #IPOMarket #HealthcareInnovation #RareDisease #StrategicPartnerships #LifeSciences #Diagnostics #MedicalDevices #DealMaking #PharmaBusiness Source :www.evaluate.com Disclaimer: The opinions are mine own and not of employer's

📊 EY’s June 2025 M&A snapshot reveals a clear trend 🔹 +68.3% YoY in #deal value (for $100M+ deals) 🔹 Fewer deals, but larger and more strategic—$82B across five megadeals 🔹 60%+ of total value from #corporate #buyers focused on #TMT and infrastructure 🧠 The most telling move? Salesforce’s $8B acquisition of Informatica announced last month. This deal marks a shift: buyers are no longer just acquiring intelligence—they’re acquiring the #datagovernance backbone to support it. What’s driving buyer behavior? 1️⃣ #Governance as Core #Infrastructure Informatica’s integration into Salesforce underscores how #MDM, lineage, and cataloging tools are now foundational to deploying responsible, enterprise-grade AI. 2️⃣ #Security & #Compliance by Design With 80% of AI pilots failing to scale, success increasingly hinges on LLM-safe zones. Platforms like Snowflake Cortex, Databricks Mosaic, Informatica CLAIRE, and Amazon Web Services (AWS) DataZone are embedding governance directly into orchestration flows. 3️⃣ Time-to-Insight #Acceleration #Data-native platforms like Sigma, Hex, Coda and even legacy-modern hybrids like Informatica - are reducing insight latency by 30–98%, driving deal interest. #Strategic M&A isn’t chasing volume—it’s targeting resilient, secure, and AI-scalable infrastructure at the data layer. #MergersAndAcquisitions #DataEcosystem #Informatica #Cybersecurity #DataGovernance #GenAI #CloudSecurity #TMT #PrivateMarkets #StrategicBuyers

Excited to introduce our new EY M&A Activity Report to capture dealmaking insights from 2023 and provide an outlook of what CEOs can expect in 2024.    M&A was off to a slow start in 2023, however, there are increasing signs of life, especially for larger dealmaking. US deal value this year has slightly surpassed 2022 year-over-year – $1.38 trillion of deals valued at $100 million-plus in 2023, compared to $1.37 trillion in 2022 (as of Nov. 30) – despite deal volume overall being down. Looking ahead, M&A activity in 2024 will be driven by the need for companies to show growth, address the desire for customers to add generative AI and other technologies, and access markets they need to serve existing customers and attract new ones.    Technology, our inaugural EY M&A Sector of the Year 2023, had a transformative year. Though it still lags pre-pandemic levels, #technology M&A activity spiked in Q3 and is trending positive in Q4. Company leaders are being more discerning as they adjust to a higher-for-longer interest rate environment, but they’re looking beyond short-term headwinds and continuing to invest in #AI capabilities and other technologies which helped drive tech stocks to outperform the S&P 500 by 10% since the start of 2022. In addition to #AI, the sector saw a boost in activity from #privateequity firms increasing investment, and companies prioritizing #cybersecurity.   Energy, our inaugural EY M&A Sector to Watch 2024, is widely anticipated to have a blockbuster year in 2024, driven by #decarbonization and #consolidation. The #energy sector is already off to a strong start in 2023, with more than $332 billion in transactions valued at $100+ million announced by US energy companies through Nov. 30, significantly eclipsing the 2022 figure in the energy sector. Activity to watch in 2024 includes investments in alternative and renewable energy, utilities divesting non-core assets, and joint ventures and collaboration on mining and metals projects.   Life sciences M&A in 2023 also rebounded to pre-pandemic M&A levels, which we expect to continue in 2024. It was the second most targeted sector this year through November in terms of deal volume, with recorded deals valued at $219.5 billion. As we look to 2024, M&A drivers include divestments, more bolt-on transactions, and private equity interest in the sector.    For more on EY M&A Sector of the Year and EY M&A Sector to Watch, the catalysts and headwinds impacting deal activity in 2023 and 2024, and what CEOs need to keep in mind for their 2024 investment strategies, see our M&A Activity Report.

I recently sat down with our Chief Economist to discuss what to expect in 2025 deal making. Tax cuts, tariffs, and immigration policies could put upward pressure on inflation, keeping interest rates higher for longer. That’s likely to slow dealmaking in some areas, but there are still sectors poised for growth: 𝗧𝗲𝗰𝗵 remains a dealmaking powerhouse, with AI innovation and a heightened focus on data security driving continued activity. 𝗘𝗻𝗲𝗿𝗴𝘆 demand isn’t slowing down. As production methods evolve, M&A in the sector will keep pace. 𝗛𝗲𝗮𝗹𝘁𝗵 𝗰𝗮𝗿𝗲 is essential no matter the economy. With a fragmented industry landscape, consolidation and scaling will be a key trend. For more insights, watch my full conversation with EY-Parthenon Chief Economist Gregory Daco here: https://lnkd.in/gSzWR83C #EYParthenon #Dealmaking #Tech #HealthCare #Energy