NEW
YORK, April 30, 2024 /PRNewswire/ -- Despite
Global M&A deal volume falling to the lowest level in almost
four years, global M&A value increased in the first quarter of
2024, according to S&P Global Market Intelligence's newly
released 2024 Q1 Global M&A and Equity Offerings Report.
The total value of first quarter global M&A deals reached
$594.47 billion, an 18.5% increase
compared to the first quarter of 2023; however, the value of
M&A transactions remains far below the levels recorded in the
second half of 2020 and throughout 2021.
The continued drop in M&A transactions is an indication that
the market still faces headwinds, which have plagued activity since
the early part of 2022. Higher interest rates have increased
economic uncertainty and the cost of financing, which have
decreased demand for M&A activity.
"While optimism is gradually growing around M&A and equity
issuance, questions still remain about interest rates, IPO
performance and regulatory approval of transactions," said
Joe Mantone, lead author of the
report at S&P Global Market Intelligence. "Lower interest
rates would add some fuel to dealmaking as it would lower the cost
of acquisition financing and potentially boost equity prices,
increasing what buyers pay for targets and entice more private
companies to go public and provide a more conducive backdrop for
increased private equity investments exits, which have been muted
since the second quarter of 2022."
Key highlights from the quarterly report include:
- The number of global M&A announcements fell to 9,022, the
lowest total since onset of the COVID-19 pandemic disrupted markets
in the second quarter of 2020.
- During the first quarter, the number of $10 billion-plus transactions reached 10, the
highest level since the 11 recorded in the second quarter of
2022.
- The value of global initial public offerings declined by 6.9%
to $23.19 billion in the first
quarter compared to the fourth quarter of 2023, and over the same
period, total transactions contracted by 20.7% to 295.
- The total value of first quarter US equity issuance reached
$39.78 billion, the highest mark
since the fourth quarter of 2021 recorded $102.93 billion in total equity issuance.
The quarterly report provides an overview of global M&A and
equity issuance trends, offering insights into the sectors and
geographies that are seeing the most activity. It also focuses on
deals with the highest valuations and strategies larger players
pursue that underscore trends occurring throughout an industry.
S&P Global Market Intelligence has produced the quarterly
global M&A and equity offering report since the first quarter
of 2018.
To request a copy of the 2024 Q1 Global M&A and Equity
Offerings Report, please contact press.mi@spglobal.com.
S&P Global Market Intelligence's opinions, quotes, and
credit-related and other analyses are statements of opinion as of
the date they are expressed and not statements of fact or
recommendation to purchase, hold, or sell any securities or to make
any investment decisions, and do not address the suitability of any
security.
About S&P Global Market Intelligence
At S&P Global Market Intelligence, we understand the
importance of accurate, deep and insightful information. Our team
of experts delivers unrivaled insights and leading data and
technology solutions, partnering with customers to expand their
perspective, operate with confidence, and make decisions with
conviction.
S&P Global Market Intelligence is a division of S&P
Global (NYSE: SPGI). S&P Global is the world's foremost
provider of credit ratings, benchmarks, analytics and workflow
solutions in the global capital, commodity and automotive markets.
With every one of our offerings, we help many of the world's
leading organizations navigate the economic landscape so they can
plan for tomorrow, today. For more information, visit
www.spglobal.com/marketintelligence.
Media Contact
Kate Smith
S&P Global Market Intelligence
+1 781 301 9311
katherine.smith@spglobal.com
or press.mi@spglobal.com
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SOURCE S&P Global Market Intelligence