The report identifies that M&A activity globally continues to face challenges. Deal volume and value both saw significant declines in 2023 and, whilst there are some positive signs in the first half of 2024, there is no evidence of the strong rebound that many predicted. The US M&A market and US buyers and sellers continue to have a very strong influence on the M&A market globally and, whilst it has been one of the more robust regions, it is experiencing lower activity levels than would be expected, which is having a knock-on effect globally.

Over the period of the report, deal processes were found to have taken longer in general, have a higher propensity to hit pauses or for discussions between parties to end. The absence of the pressure on buyers which come from a very hot market meant buyers were more willing to fully pursue due diligence issues and hold out for their position on the legal terms of deals. However, those deals that did reach signing were still largely on legal terms which favoured sellers. Seller friendly deal terms have been a continuing theme in the M&A market over the last 10+ years. This trend was expected to change in a tightening market, but the report shows that this is much slower than would be expected.

The report also identifies and offers further analysis into some of the market trends that have been emerging. These include the use of buy-side insurance, AI trends and their influence on deals, ESG, merger control and foreign direct investment.

Benjamin Parameswaran, Global Co-Chair of Corporate at DLA Piper, said: “The upcoming 12 months offer reasons for optimism. The uncertainty caused by the convergence of electoral cycles in many major western democracies will be over and interest rates and inflation seem to be falling globally. We also note that the nature of the deals being done are changing and innovations, which are largely technology and AI driven, are changing the way deals are being done.”

Kathleen Ruhland, Global Co-Chair of Corporate at DLA Piper, said: “Our Global M&A Intelligence Report is significant because we do more deals on a global scale than any other law firm, allowing us to analyze data from our transactions. Our unique and market-leading database gives us a pulse on important terms and conditions in deals being negotiated every day across the world – giving us an edge in the insights and legal solutions we provide our clients.”

To register for a copy of the Global M&A Intelligence Report 2024 click here.

Related professionals:Benjamin ParameswaranKathleen Ruhland