Global merger and acquisition (M&A) deal announcements have seen an increase for the second consecutive quarter, according to the newly released Q3 2024 Global M&A and Equity Offerings Report by S&P Global Market Intelligence. This growth marks a milestone not seen since the third and fourth quarters of 2020, with global M&A announcements increasing by 7.3 per cent year-over-year, breaking a 10-quarter streak of declines. Lead author of the report, Joe Mantone, expressed optimism for the future, stating that signs of recovery in the dealmaking landscape are emerging, with further rate reductions from the Federal Reserve expected to lower acquisition financing costs.
However, while M&A activity is on the rise, global equity issuances have seen a significant slowdown in the third quarter of 2024. Stock market volatility led to a nearly 33 per cent drop in the total value of equity issues to USD 65.63 billion from second-quarter levels, and a decline of nearly 21 per cent compared to the same period last year. This decline in global equity issuance volume fell to 788, down by 241 from the second quarter of 2024 and by 198 from the third quarter of 2023. Mantone highlighted that despite subdued volatility expected in the fourth quarter, the IPO pipeline faces near-term challenges, with deals likely to pause around the US elections and year-end holidays.
The quarterly report from S&P Global Market Intelligence offers an overview of global M&A and equity issuance trends, with insights into sector-specific developments. It emphasizes the divergence between the trends in global M&A deals and IPO activity, with M&A announcements seeing growth and equity issuances experiencing a slowdown. The report highlights the potential for substantial optimism in the dealmaking landscape for 2025, as signs of recovery continue to emerge.
Despite the challenges faced by the IPO pipeline in the near-term, the report suggests that positive indicators in the fourth quarter could foster optimism for the future. Mantone pointed out that even with subdued volatility expected in the fourth quarter, the IPO pipeline may face challenges, with deals likely to pause around the US elections and year-end holidays. The report provides valuable insights for investors and industry professionals looking to navigate the changing landscape of global mergers and acquisitions.
Overall, the Q3 2024 Global M&A and Equity Offerings Report by S&P Global Market Intelligence sheds light on the current trends in global M&A deals and IPO activity. While M&A announcements have seen growth for the second consecutive quarter, global equity issuances have experienced a significant slowdown. With further rate reductions from the Federal Reserve expected to lower acquisition financing costs, there is optimism for the future of the dealmaking landscape. Investors and industry professionals can benefit from the insights provided in the report to make informed decisions in navigating the evolving global M&A and equity issuance trends.
