BDO Horizons is a publication focusing on global M&A trends in the SME sector, with the aim of providing expert insights and forecasts on the M&A market and its evolution. The quarterly publication provides an overview of the M&A landscape in different geographical regions.
Themes of the latest publication
Political changes, inflation, high interest rates and conflicts were reflected in M&A activity in 2024. In a global perspective, the number of mid-market M&A transactions fell by around 7% in the second half of 2024 to just under 5 600 transactions. In contrast, the value of completed transactions exceeded USD 47 billion and increased by almost 4% from the first half of the year. Private equity investors have played a significant role in the M&A market and around one third of completed transactions were private equity driven.
Despite the decline in M&A activity, BDO managed to maintain the number of deals completed during the year at the previous year's level and thus achieved the number one position in FactSet's 2024 Global Advisor Ranking.
In the Nordic countries, 196 M&A deals worth a total of USD 14 billion were completed in the second half of 2024. The number and value of M&A transactions fell by 22% and 14% respectively compared to the first half of the year. However, for the year as a whole, the volume and value of M&A transactions increased by 2% and 14% respectively. In the Nordic countries, the market was particularly constrained by high interest rates, which have not fallen in line with inflation.
In the second half of 2024, TMT and Industrial and Chemicals were the most active sectors, covering almost half of the transactions in both global and Nordic markets.
The M&A market is expected to pick up in 2025 if interest rates continue to fall and the geopolitical situation stabilises. As interest rates fall, private equity investors and strategic buyers are expected to become increasingly active in M&A activity. Among the global megatrends, digitalisation and carbon neutrality will be key drivers for future M&A.
