Quick Summary of the Report
- M&A Activity: There was a notable increase in M&A activity towards the end of Q1 2023, indicating a recovery trend. M&A volumes have normalized, and corporate client dialogues have increased.
- Sector Shifts: There’s been a significant shift towards “older economy” sectors, notably natural resources, which led with 25% of all activity.
- Corporate Buyers: A shift from sponsors to corporate buyers was observed, with corporate simplification and cross-border activity gaining momentum.
- Technology and Digital Businesses: The report highlights the continued momentum in corporate simplification, which likely impacts tech and digital businesses. The role of technology, especially AI, in driving M&A across industries is emphasized.
- Future Outlook: Looking into 2024, there’s an expectation of continued activism, a focus on strategic M&A, and a reemergence of cross-border activity.
10 Stats from The Report
- $3 trillion is the expected amount of renewable energy investment over the next decade.
- 25% of all M&A activity in 2023 was in the natural resources sector, up from 19% in 2022.
- 9% was the contribution of technology, media and telecom sectors to global M&A in 2022.
- $500 million and above is the typical size of businesses separated through corporate simplification.
- 70%+ of separation announcements had a positive market reaction.
- 30-35% of activist campaigns in 2023 targeted large-cap companies, up from 20% two years ago.
- 104 take-private deals were completed in 2023.
- $3 trillion was the total M&A dollar volume in 2023, down 20% from the previous year.
- 22 global separations above $500 million were announced in 2023.
- 85 was the average number of annual activist campaigns from 2018-2022.
Click here to download the full report: Goldman Sachs 2024 M&A Outlook Report
