Deal Drivers: Americas FY 2024

Investment Rating - The report indicates a positive outlook for M&A activity in the Americas, suggesting a resilient market environment despite some economic uncertainties [4][8]. Core Insights - The M&A market in the Americas recorded 14,012 deal announcements in 2024, with a total value of US$2 trillion, reflecting a year-over-year decline in volume but an increase in value [22][21]. - The average deal size has increased, indicating greater confidence among dealmakers, with private equity buyout volume showing a modest recovery [26][21]. - The report highlights a significant focus on larger, strategic acquisitions, with the value-to-volume ratio reaching its highest point since 2021 [22][21]. Summary by Sections Foreword - The Federal Reserve's rate cuts in the latter half of 2024 have made borrowing more accessible, fostering a favorable environment for dealmaking [5][4]. - Despite optimism, there are concerns regarding inflation and geopolitical tensions that may impact future M&A activity [6][7]. Outlook - The Northeastern US leads in M&A activity with 698 potential deals identified, while Brazil shows significant interest with 166 'for sale' stories [11][12]. - The TMT sector is expected to see robust M&A activity driven by innovation in AI and semiconductors, with 609 'for sale' stories [17][11]. Consumer Sector - The consumer sector remains stable, with 977 deals worth US$138 billion, showing negligible changes from the previous year [60][22]. - High-income households are driving discretionary spending, which is crucial for the consumer sector's performance [58][62]. Major Deals - The largest deal in 2024 was General Electric's spin-off of GE Vernova, valued at US$38.1 billion, followed by Mars' acquisition of Kellanova for US$36.1 billion [30][31]. - The report notes that strategic motivations are driving the top deals, with a focus on enhancing operational efficiencies and market positioning [30][32]. Sector Performance - The TMT sector led in deal count with 3,726 transactions, while the energy, mining, and utilities sector followed with 360 deals [29][22]. - The report emphasizes that sectors benefiting from innovation, particularly in AI and energy transition, are likely to outperform others [8][17].