Insights on the Global M&A Landscape

By Anirban Sen

NEW YORK (Reuters) – Dealmakers are preparing for a decline in global mergers and acquisitions in the fourth quarter, as firms delay pursuing significant targets ahead of the U.S. elections. They hope this slowdown is only temporary and expect a rebound next year.

Insights from Industry Experts:

TOM MILES, GLOBAL CO-HEAD OF M&A, MORGAN STANLEY
“We haven’t seen any deals over $50 billion recently. Historical trends show that such large transactions typically boost deal volume. The absence of these mega-deals is tied to existing regulatory pressures, making it challenging to complete deals in sectors like healthcare and tech. However, there is notable activity in the $1 billion to $20 billion range, indicating that corporates are investing in M&A despite claims of a weak market.”

ERIC TOKAT, CO-PRESIDENT OF INVESTMENT BANKING, CENTERVIEW PARTNERS
“I expect 2025 to be a strong year for M&A, driven by significant activity. While it’s uncertain which deals will materialize as large transactions, the overall momentum is positive compared to previous quarters.”

JAY HOFMANN, CO-HEAD OF M&A, NORTH AMERICA, JPMORGAN
“Companies are eager for large, innovative deals but will proceed cautiously, prioritizing low-risk transactions until there’s more certainty.”

FRANK AQUILA, SENIOR M&A PARTNER, SULLIVAN & CROMWELL
“M&A activity has increased increasingly as a corporate focus, supported by a stable U.S. economy. This environment, coupled with anticipated interest rate cuts, encourages deals. We expect more European and Japanese firms to pursue acquisitions in the U.S., recognizing the potential for strong revenue growth. Sectors like healthcare, financial services, and tech are likely to see consolidations, setting a positive outlook for late 2024 and early 2025.”

ADAM EMMERICH, CO-CHAIR OF WACHTELL LIPTON’S CORPORATE DEPARTMENT
“There is uncertainty about the regulatory impact of either administration in upcoming years. Most deals being signed will likely close under a new administration.”

EAMON BRABAZON, CO-HEAD OF EMEA M&A, BANK OF AMERICA
“We are witnessing a significant increase in both deal velocity and types. The diverse range of strategies being employed is a promising indication, with expectations for above-trend sponsor exits in the coming years.”