M&A Deals Continue To Rise, IPO Issuances Slow Globally In July-September: Report

Trends in global merger and acquisition (M&A) deals and Initial Public Offering (IPO) activity continue to diverge, according to S&P Global Market Intelligence's newly released Q3 2024 Global M&A and Equity Offerings Report. Global M&A deal notifications increased for the second consecutive quarter, while global equity issuances saw a significant slowdown in the third quarter of 2024.

The number of global M&A notifications rose slightly quarter-on-quarter in Q3, marking the second consecutive quarter of growth--a milestone not seen since the third and fourth quarters of 2020. Year-over-year, global M&A notifications increased by 7.3 per cent, breaking a 10-quarter streak of global declines, as reported by the financial information and analytics firm, S&P Global Market Intelligence.

"Signs of recovery continue to emerge in the dealmaking landscape, and additional positive indicators in the fourth quarter could foster substantial optimism for 2025. Further rate reductions from the Federal Reserve typically lower acquisition financing costs," said Joe Mantone, lead author of the report at S&P Global Market Intelligence.

Mantone also highlighted that even with 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. 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.

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. 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. (ANI)