Dealmaker's Digest: A Top 10 Bulletin - December 2024

Deal Value Trends

Aggregate global monthly deal value¹ in November increased 15% from October, marking the second-highest monthly deal value of 2024 at nearly $350 billion. Total deal value was up 25% year-over-year (vs. November 2023).

Transactions involving strategic buyers in November increased 33% by value from October. Strategic deal value in November increased 30% year-over-year (vs. November 2023).

Financial, or sponsor, buyer transactions declined slightly in November, by 6% or about $8 billion. Year-over-year (vs. November 2023) sponsor buyer deal value was up 18%.

Deal Count Trends

Global deal count decreased 10% in November from October but remained one of the most active by deal count in 2024. Year-over-year (vs. November 2023) deal count increased 5%.

Strategic buyer deal count in November declined by 8% from October’s peak. Like aggregate deal count, strategic buyer deal count held relatively steady year-over-year, up 6% (or about 90 transactions) vs. November 2023.

Sponsor buyer deal count in November declined moderately (14%) from October and held steady year-over-year (vs. November 2023), with an increase of just 4%.

By Deal Count

• The software industry remains at the top for U.S. M&A activity by deal count in November, continuing its streak as the leading industry by volume, with almost twice as many deals as the runner-up.
• Services-based industries continue to remain active, with financial services and other professional services rounding out the top three sectors in November by deal count.

By Deal Value

• The construction industry topped the charts by deal value in November for the first time in 2024, with two $10 billion-plus deals during the month.
• Software took second place in November for deal value, with one of the five largest U.S. deals in November involving a target in the software sector. The energy industry came in close behind at third.

Largest U.S. Strategic Deal

Amcor plc and Berry Global Group have agreed to merge in an all-stock transaction valued at $8.4 billion.

Largest U.S. Sponsor Deal

Blackstone has agreed to acquire a majority stake in Jersey Mike’s Subs in a transaction valued at $8 billion.

Inbound U.S. M&A Activity

• By deal value, inbound U.S. activity decreased 10% in November from October’s peak but represented the second highest inbound value year-to-date. Year-over-year (vs. November 2023) inbound deal value increased 86%.
• By deal count, acquisitions of U.S. targets by non-U.S. acquirers decreased 22% in November from October. Year-over-year (vs. November 2023) inbound deal count decreased 30%.
• UK-based acquirers undertook the largest number of inbound transactions in November with 18 deals, followed by Canada at 12. Japan and France tied for third, each with 9 deals.

Outbound U.S. M&A Activity

• By deal value, outbound activity in November declined 49% month-over-month (vs. October 2024) and by 53% year-over-year (vs. November 2023).
• By deal count, acquisitions of ex-U.S. targets by U.S. buyers decreased from October to November by 18%. Year-over-year (vs. November 2023), outbound deal count fell 18%.
• U.S. acquirers most frequently looked to targets in the UK in November with 45 transactions. Canada and Germany trailed behind in second and third with 17 and 16 transactions, respectively.

Market Spotlight: France

• By deal value, inbound M&A activity YTD in France has jumped 137% from 2023, to nearly $70 billion. By deal count, inbound activity decreased slightly (3%) from the comparable period in 2023.
• 2024 YTD outbound M&A activity from France decreased 13% from 2023 by deal value. By deal count, outbound activity has decreased marginally (5%) in 2024 YTD but remains substantially more active when compared with 2020-2021.  
• The U.S. was France’s biggest partner in 2024 YTD for both inbound and outbound M&A activity at 98 and 114 transactions, respectively, followed by the UK. Germany and Italy were also active for French crossborder activity.
  
   

Corporate Transparency Act

• On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction against enforcement of the Corporate Transparency Act (CTA), including a stay of the CTA’s Beneficial Ownership Information Reporting Rule (BOI Rule).
• The BOI Rule, which took effect on January 1, 2024, requires legal entities formed or registered to do business in the United States to report beneficial ownership information to a national database maintained by the Financial Crimes and Enforcement Network within the U.S. Treasury, subject to certain exceptions.
• The preliminary injunction temporarily prohibits FinCEN from enforcing the CTA and BOI Rule pending final resolution of the lawsuit challenging the CTA’s constitutionality. While the situation continues to develop, the preliminary injunction will have significant implications, particularly given the rapidly approaching January 1 initial reporting deadline for entities formed or registered prior to 2024.
• For further information on the CTA injunction, you can access the Ropes & Gray client alert on the topic here.

For more information, please contact your usual Ropes & Gray attorney or reach out to a member of our M&A team below.