Jul 1, 2024 - Business
U.S. M&A tailwinds slow during Q2
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An initial surge of M&A at the start of the year has hit a slowdown, LSEG data shows.
Why it matters: Financing markets are back and ample cash is on hand for buyers, but the hesitance of CEOs to go all-in on a takeover continues to weigh over industries.
Zoom in: The value of U.S. M&A in the second quarter dipped 5% to $297.7 billion compared to the same prior year period, according to LSEG.
- Worldwide M&A values followed a similar trend.
- The number of deals done in the U.S. during the quarter fell by nearly half, to 2,548.
- Notable deals in the quarter include Sony's agreement to buy Alamo Drafthouse and T-Mobile's acquisition of UScellular's wireless business.
- ConocoPhillips struck a $17 billion deal to buy Marathon Oil in May.
Yes, but: Adding Q1 and Q2 together, this year so far is stronger than year-to-date last year.
- Dealmakers have long referenced the pent-up M&A demand lingering since the Federal Reserve began its rate hikes and acquisition financing dried up.
- So far, 2024 has seen an overall uptick in M&A, but not the surge some had expected.
By the numbers: Worldwide, private equity-backed M&A is up year to date.
- PE-sponsored deals rose 40% to $361.2 billion during the quarter; the number of transactions in the space also fell by nearly half, to 4,326.
