Inside the Strategy Room 242. Planning for the next wave of M&A
24 snips
Mar 13, 2025 
Jake Henry and Mieke Van Oostende, senior partners at McKinsey, delve into the M&A landscape, exploring anticipated trends for 2024-2025. They discuss how smaller transactions are on the rise, particularly in tech and finance, and the transformative impact of AI on deal strategies. The conversation highlights the importance of navigating geopolitical risks and the need for a solid cultural fit in acquisitions. They also address the evolving investment and divestment strategies shaping company portfolios amidst economic uncertainties.
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2024 M&A Trends
- 2024 M&A activity stayed low, similar to post-pandemic levels, but with a 10% uptick from 2023.
- Deal activity shifted geographically, with less focus on China and more on Korea and Japan in Asia.
Deal Composition Shift
- Larger M&A deals were concentrated in Global Energy and Materials (GEM).
- Smaller deals focused on acquiring capabilities in rapidly evolving tech and financial services.
External Factors Influencing M&A
- AI is driving M&A activity, especially in acquiring new assets and capabilities.
- The shift towards sustainable energy sources also fuels deals in GEM.