In the realm of global mergers and acquisitions (M&A), the first quarter of 2024 saw a notable surge in activity, accompanied by a shift in dynamics observed by leading law firms. While the volume of transactions witnessed a decline, the total worth of these deals soared, indicating a penchant for larger-scale endeavors.
Robust Growth in Deal Value
According to the latest rankings by the London Stock Exchange Group (LSEG), the total value of announced M&A transactions worldwide during Q1 2024 reached a staggering $797.6 billion. This figure marks a substantial 38% surge compared to the same period last year, painting a picture of resilience and growth in the global M&A landscape. The LSEG report hailed this surge as the “strongest opening period for deal-making since 2022.”
Want to know if you’re earning what you deserve? Find out with LawCrossing’s salary surveys.
Decline in Transaction Volume
Interestingly, amidst this surge in deal value, the number of transactions recorded a significant downturn, hitting a nine-year low in the first quarter. With over 10,700 deals announced, there was a notable 31% drop compared to the corresponding period of the previous year. This decline in volume, however, did not dampen the enthusiasm for substantial M&A ventures.
Embracing Big-ticket M&A Endeavors
Mark Bekheit, the global vice chair of Latham & Watkins’ M&A practice, noted a shift in client attitudes towards pursuing larger-scale M&A endeavors. This shift manifested in a greater willingness among clients to “take a bigger swing on big-ticket M&A items.” Latham & Watkins, for instance, played a significant role in 129 globally announced deals valued at $84 billion in the last quarter. Notable among these deals was Home Depot’s acquisition of building materials supplier SRS Distribution for $18.25 billion.
Leading Firms and Their Performance
In the realm of legal advisory, certain firms stood out for their notable contributions to the M&A landscape. Wachtell, Lipton, Rosen & Katz, a New York-founded firm, secured the top principal adviser ranking by deal value, showcasing remarkable performance by working on deals worth $147 billion in Q1 2024, compared to $84 billion in the same period last year.
Skadden, Arps, Slate, Meagher & Flom emerged as the leader in LSEG’s rankings for globally announced deals by value among firms advising any party in a transaction, demonstrating their prowess in navigating high-value M&A landscapes.
U.S. Deal Making Reaches New Heights
The United States witnessed a particularly strong start in deal-making, marking the most robust beginning in three years, as highlighted by LSEG. A significant proportion of the announced deals, accounting for 61%, either targeted U.S. companies or involved some form of U.S. participation, reflecting the country’s enduring attractiveness for M&A activities.
Optimism Amidst Market Dynamics
Adam Emmerich, co-chair of Wachtell’s corporate department, expressed optimism regarding prevailing market dynamics, asserting that optimism currently holds sway across M&A, equity, and financing markets, particularly in the U.S. This sentiment underscores a buoyant outlook for the future trajectory of M&A activities, setting the stage for continued growth and dynamism in the global landscape.
Don’t be a silent ninja! Let us know your thoughts in the comment section below.
