IMAP closes 252 M&A transactions worth more than $30 billion in 2024
IMAP dealmakers successfully closed 252 M&A deals valued at over $30 billion in 2024, in addition to 60 Debt Advisory transactions worth more than $4 billion, marking another year of strong performance in the mid-market space.
Overall, transaction activity had slowed in recent years following the strong post-pandemic surge of 2021, hindered by factors such as inflation, high interest rates, and tight financing. However, with improving economic conditions, declining interest rates, and a growing sense of confidence, the dealmaking environment has steadily become more favorable. In the final quarter of 2024, the ECB carried out a third rate cut of the year, while the Fed and BoE each lowered rates for the second time that year. By the end of 2024, the M&A market began to show clear signs of recovery, and IMAP closed 71 M&A deals in Q4 alone.
Although the path for further interest rates cuts in 2025 is unclear, and the effect of potential increased tariffs on world trade flows is unknown, business and consumer confidence levels have seen a rebound and are expected to increase further in 2025, particularly among previously hesitant owners of private mid-sized companies. Additionally, financial players are likely to return to the market, eager to deploy their record levels of unspent capital, and in search of opportunities following a prolonged period of sitting on the sidelines. A recurrent theme over the past few years has been the expected resurgence of PE firms exiting platform investments, which still remains to be seen. However, many of the fundamental factors supportive of deal activity remain in place: strong corporate profits, an aging owner base looking for succession exits, an ongoing move towards market consolidation, and the need to enhance capabilities by integrating new technologies. IMAP advisors are reporting substantial deal pipelines going into the new year.
More than a third of IMAP transactions in 2024 were cross-border as IMAP dealmakers continued to leverage their international reach and help clients seize opportunities across the world. From a sector standpoint, IMAP was particularly active in the Industrials, Business Services, Technology, and Consumer segments, which together accounted for more than half of total deal volume.
Jurgis V. Oniunas, IMAP Chairman commented: “2024 ended with a strong finish and we have growing pipelines going into the new year. IMAP partners continue to find innovative solutions for clients in the face of quickly changing economic, technological and geopolitical conditions, highlighting the resilience of IMAP’s de-centralized, highly flexible, and collaborative business model.”
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Jurgis V. Oniunas
IMAP Chairman
At the start of the year, the outlook for Q1 was highly optimistic, with expectations of slowing inflation, lower interest rates, and improving growth projections. Unfortunately, we live in interesting times. Early in the year, speculation around the disruptive impact of AI on traditional SaaS business models triggered a significant revaluation in parts of the Software sector. More recently, escalation in the Middle East conflict has introduced fresh volatility – pushing oil prices higher, adding upward pressure on inflation, and creating supply-chain uncertainties. While it is too early to tell how these new shocks will eventually affect the global M&A market, we can be sure that our dealmakers around the world are on the ground every day – negotiating, re-evaluating, adjusting positions, and adapting to whatever the environment throws at them to deliver the best outcomes for their clients. They’ve done it for over 50 years, and that’s exactly what they’ll continue to do, no matter the conditions.
