Market Insights Financial Corporate Finance

Mergers and Acquisitions - North America

North America

The Mergers and Acquistions market market in North America is set to witness a significant increase in transaction value, with projections estimating it to reach a staggering US$1.20tn by 2024.
This growth is expected to be steady, with an annual growth rate (CAGR 2024-[yeartoday]) of NaN%, resulting in a total projected amount of US$1.20tn by the end of 2024.
In terms of individual transactions, the average value in the Mergers and Acquistions market market is anticipated to be US$270.70m in 2024.
When comparing global markets, it becomes evident that the United States leads the way with the highest transaction value reaching US$1,091.00bn in 2024.
In North America, the M&A market is thriving, with companies across various industries seeking strategic partnerships to fuel growth.

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Analyst Opinion

The Mergers and Acquisitions market in North America is experiencing a significant uptrend in activity, driven by various factors that are shaping the landscape of deal-making in the region.

Customer preferences: Companies in North America are increasingly looking to mergers and acquisitions as a strategic tool to drive growth, expand market share, and enhance competitiveness. Customers prefer deals that offer synergies, access to new technologies, and opportunities to diversify revenue streams.

Trends in the market: In the United States, the technology sector is witnessing a surge in M&A activity as companies seek to stay ahead in the digital transformation race. Tech giants are acquiring innovative startups to bolster their product offerings and stay competitive in the rapidly evolving market. Additionally, healthcare M&A deals are on the rise in Canada as companies look to capitalize on the growing demand for healthcare services and solutions.

Local special circumstances: In Mexico, the M&A market is influenced by regulatory changes and government policies that impact deal-making. Companies are navigating through complex regulations and geopolitical uncertainties to pursue strategic acquisitions and partnerships. The energy sector in Mexico is particularly active, with companies seeking to capitalize on the country's energy reforms and tap into new opportunities in the market.

Underlying macroeconomic factors: The stable economic growth in North America, coupled with low interest rates, is creating a conducive environment for M&A transactions. Companies are taking advantage of cheap financing options to fund acquisitions and drive growth strategies. Moreover, the region's robust capital markets and investor confidence are fueling deal-making activities across various industries.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.