U.S. M&A activity shows gains as election looms

Yes, but: In Q3, U.S. M&A fell 15% to $312.6 billion compared to the year-ago quarter.

• That's the second quarter in a row that year-over-year deal values dropped in the U.S. after a gangbuster Q1.
• The actual number of U.S. deals announced this year is down 29% to 8,554.

Zoom in: Private equity sales remain at a trickle, but PE buyers are seeing a resurgence.

• Year to date, PE-backed buyouts grew nearly 40% to $530 billion on 6,700 deals, just under half of the amount achieved year to date last year.
• Worldwide M&A value rose 18% for the first three quarters of 2024, including a 23% bump in the U.S.
• "Positive momentum has continued year-to-date in M&A, and Q3 was another step in the right direction," Goldman Sachs' co-head of Americas M&A Brian Haufrect tells Axios.
• In the beginning of the economic recovery, M&A was driven by older economy sectors as well as stock-focused corporate deals, he notes.
• "We're now seeing much broader-based participation, which has been encouraging," Haufrect says.

By the numbers: Worldwide, the high tech, energy and financial sectors saw the largest deal values year to date.

• In the U.S., Skydance's battle to secure a deal for Paramount led to a drawn-out saga and a major deal for the sector.
• Media and Entertainment's year-to-date global value hit $116 billion, a 50% surge from the prior year. The number of deals across the space fell 19% to 1,988.

What we're watching: U.S. deal activity is expected to slow leading up to the presidential election, as companies wait to see what kind of administration will oversee transactions.

• "To date, activity has been resilient, but it's possible we see a bit of an air pocket on the eve of the election," says Haufrect.