S&P Global Market Intelligence Quarterly Report Finds Global M&A Continues to Rebound while IPO Activity Continues to Falter in Q3
Rhea-AI Summary
Global M&A activity showed positive momentum in Q3 2024, with deal announcements increasing 0.36% quarter-over-quarter and 7.3% year-over-year, reaching $708.74 billion in total value. This marks the first consecutive quarterly growth since 2020. However, equity issuance faced challenges, with total value dropping nearly 33% to $65.63 billion from Q2 levels and 21% from the previous year. The number of equity issuances fell to 788, down 241 from Q2 2024. Market volatility and upcoming US elections are expected to impact IPO activity, while potential Federal Reserve rate reductions could support M&A financing costs.
Positive
- M&A deal announcements increased 7.3% year-over-year, ending 10 quarters of decline
- Total value of global M&A deals rose 29.1% YoY to $708.74 billion
- Second consecutive quarter of M&A growth, first time since 2020
Negative
- Equity issuance value fell 33% QoQ to $65.63 billion
- Global equity issuance volume decreased by 241 deals from Q2
- Market volatility causing slowdown in IPO activity
News Market Reaction – SPGI
In the trading session that priced this news, SPGI declined 0.10%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The number of global M&A announcements ticked up slightly,
"Signs of recovery continue to dot the dealmaking landscape, and additional positive indicators in the fourth quarter should create a substantial amount of optimism for 2025 as further rate reductions from the Federal Reserve tend to lower the cost of acquisition financing," said Joe Mantone, lead author of the report at S&P Global Market Intelligence. "However, after a strong start to the third quarter, equity issuance was sidetracked after a spike in volatility, and issuers have been slow to return. Even if volatility is more subdued in the fourth quarter, the calendar presents some near-term challenges for IPO pipelines with deals expected to pause around the US elections and year-end holidays. A lack of fourth-quarter IPOs would only add to pent-up demand for the transactions."
Key highlights from the Q3 2024 Global M&A and Equity Offerings Report include:
- Stock market volatility led to the total value of equity issuance falling nearly
33% to$65.63 billion 21% from the year-ago period. - Global equity issuance volume fell to 788, down 241 from the second quarter of 2024 and down 198 from the third quarter of 2023.
- The number of global M&A announcements increased quarter over quarter for the second straight period, the first time that has happened since the third and fourth quarters of 2020.
- The total value of global M&A deals increased
29.1% year over year to$708.74 billion
The quarterly report provides an overview of global M&A and equity issuance trends, offering insights into the sectors and geographies that are seeing the most activity. It also focuses on deals with the highest valuations and strategies larger players pursue that underscore trends occurring throughout an industry. S&P Global Market Intelligence has produced the quarterly, global M&A and equity offering report since the first quarter of 2018.
To request a copy of the Q3 2024 Global M&A and Equity Offerings Report, please contact press.mi@spglobal.com.
S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.
About S&P Global Market Intelligence
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S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.
Media Contact
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S&P Global Market Intelligence
+1 781 301 9311
Katherine.smith@spglobal.com or press.mi@spglobal.com
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SOURCE S&P Global Market Intelligence