Global M&A Deal Value Poised to Hit $3.5 Trillion in 2024

New research from Bain & Company reveals a 15% growth in global M&A activity, with the Middle East spearheading the surge, recording an impressive 88% increase in deal volume. The study highlights the rising adoption of generative AI in dealmaking, credited with streamlining processes, reducing costs, and enhancing efficiency across the board.

The 2024 M&A market is ending the year much as it began—with anticipation for a break in the buyer-seller logjam. The year has been marked by careful adaption as dealmakers accommodate the new realities of higher interest rates and intense regulatory scrutiny.

Bain & Company predicts overall deal value will reach $3.5 trillion by the end of 2024, up 15% year over year and consistent with mid-2010s levels. Global M&A deal volume is up 7% year over year, reversing a two-year decline.

The Middle East has played a key contribution in this global growth, with the region's strategic inbound and domestic M&A activity surging by 88% year-on-year (YoY) to reach $36 billion in the first ten months of 2024. Sovereign wealth funds and government-related entities in Saudi Arabia and the UAE have led this robust performance, which aligns with broader global trends.

“The Middle East’s exceptional M&A growth underscores the region’s transformation into a global investment powerhouse," said Grégory Garnier, Middle East Head of Bain's Private Equity and Sovereign Wealth Fund practices. "Sovereign wealth funds and leading regional players are not only driving domestic opportunities but also capitalizing on international markets with strategic precision. The surge in high-value deals within energy, technology, and advanced manufacturing reflects a broader shift toward innovation and sustainability, positioning the Middle East as a key driver of global economic activity."

While globally, private equity deal value rose by 29% and venture capital increased by 30% YoY, the Middle East saw extraordinary sector-specific growth. Energy & Natural Resources, Technology, and Advanced Manufacturing Services reported YoY increases of approximately 140%, 90%, and 300%, respectively.

Navigating regulatory scrutiny and prolonged close periods
As challenges and litigation extended deal close timelines in 2024, nearly half (47%) of dealmakers said regulatory concerns impacted the types of deals their companies considered. This dynamic was mirrored in the Middle East, where global investors increasingly prioritized the region due to its comparatively favorable regulatory environment. Investments in European targets by Middle Eastern acquirers have grown by over 100% YTD compared to 2023, highlighting their strategic realignment toward regions offering better value and stability.

The largest deals globally and regionally showcased a clear focus on synergies. Scale deals accounted for 59% of total deal value in 2024 globally—the highest proportion since 2015—and were also dominant in the Middle East, reflecting the region’s emphasis on consolidating leadership in energy and advanced manufacturing.

Adapting strategies to new realities of higher interest rates

In response to persistently high interest rates, strategic acquirers globally have been more selective in their deals, requiring more concrete value creation. Middle Eastern dealmakers exemplified this adaptability, leveraging both revenue and cost synergies in high-value transactions. The region's strategic focus and disciplined approach continue to attract global capital.

Dealmakers increasingly rely on generative AI to save time and costs
Early adopters of generative AI reported significant efficiencies in 2024. Globally, one in five M&A practitioners has used the technology for sourcing, screening, and diligence. The Middle East has been quick to adopt these tools as well, with dealmakers leveraging AI to streamline processes in a fast-growing and competitive market.

Looking ahead to 2025

Bain & Company will be releasing its full 2025 M&A Report in February, including a comprehensive analysis of what to expect from dealmaking in the year ahead; a deep dive on several key industries; and the full results of its M&A Practitioners’ 2025 Outlook Survey—including perspectives on dealmaking from more than 300 M&A practitioners in the US, Australia, Brazil, Canada, France, Germany, India, Italy, Japan, and the UK.