Global M&A activity surges – WTW report

Large transactions played a key role in driving M&A activity

Global M&A activity surges – WTW report

Insurance News

By Josh Recamara

Global M&A activity recorded a substantial increase in completed transactions in 2024, according to research from WTW’s Quarterly Deal Performance Monitor (QDPM).

The report, conducted in collaboration with the M&A Research Centre at Bayes Business School, indicates that large transactions played a key role in driving this growth, setting the stage for continued activity in 2025.

According to the report, 710 deals valued at over $100 million were completed globally last year, a 15% jump compared with the 619 deals finalized in 2023.

Notably, transactions valued between $1 billion and $10 billion saw a sharp rise, particularly in the second half of 2024. During this period, 99 such deals were completed, which represents a 36% year-over-year increase. Across the full year, 162 large deals were completed, compared with 134 in 2023. The number of megadeals, those exceeding $10 billion in value, also rose, with 15 completed globally in 2024 compared to 11 in the previous year, the report showed.

Commenting on the findings, Jana Mercereau, head of Europe M&A consulting at WTW, said: “Buyers have endured a prolonged period of volatility and challenges on multiple fronts. Yet the underlying drivers of strategic growth and desire for new capabilities persist, with pent-up demand and strong balance sheets set to provide a tailwind for more M&A in 2025.”

Regionally, North America led with 361 deals completed in 2024, a 14% increase from 317 in 2023. Europe recorded a 32% rise in deal activity, with 155 transactions completed compared to 117 the previous year. Asia-Pacific also saw growth, completing 163 deals, up from 155 in 2023.

Despite strong equity returns in 2024, 37% of companies completing deals outperformed the broader market in terms of share price performance. However, the overall performance of all deals shows that most acquirers underperformed, with a decline of -10.9 percentage points (pp) compared to the market for transactions valued at over $100 million.

Europe was an exception in the latter half of the year, posting a positive performance of +0.7pp, while North America and Asia-Pacific saw underperformance of -8.7pp and -11.2pp, respectively.

Mercereau noted that while financing conditions have improved, with interest rates stabilising and regulatory scrutiny easing under the incoming US administration, challenges remain.

“[G]etting complex M&A transactions right in 2025 will remain challenging,” Mercereau added. “Dealmakers face ‘known unknowns’ including the risk of new tariffs and policies refueling inflation, affecting supply chain stability and consumer prices.”

Private equity is also expected to have a growing impact on M&A activity, according to the report. Firms under pressure to utilize significant available capital may influence deal timelines, prompting corporate buyers to adapt and compete more efficiently in securing strategic opportunities.

 

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