The most popular industries for M&A activity in the lower and middle market in 2024 are:
1. Technology:
The technology sector is expected to be a hotspot for M&A activity, with tech companies increasingly looking for opportunities in healthcare subsectors like MedTech and medical devices.
Data shows that while technology was only the 4th highest industry for total deal flow in 2023, tech deals had the highest pursuit rate at 8.92%, indicating strong buyer demand.
2. Healthcare:
The healthcare sector, particularly MedTech and medical devices, is predicted to see steep growth and attract significant M&A interest.
Tech companies are increasingly looking to acquire healthcare targets, highlighting the convergence of these two industries.
3. Energy and Utilities:
The energy and utilities sector are expected to be an M&A hotspot, driven by the focus on energy transition and business transformation.
- In Canada, the outlook for M&A activity in critical minerals is positive as miners position themselves for the energy transition.
- In Japan, significant investments are anticipated in areas like hydrogen test projects and offshore wind production as the country is heavily committed to the energy transition.
4. Life Sciences:
Megadeals are likely to occur in the life sciences industry, as it is particularly affected by trends like digitalization and technological innovation.
The most popular industries for lower and middle market M&A activity in 2024 are expected to be technology, healthcare, energy, utilities, and life sciences, driven by factors such as industry convergence, energy transition, and technological disruption.
June 14, 2024
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