Global mergers and acquisitions deals rose 30% to $755.1 billion in the first quarter

The total volume of mergers and acquisitions deals in the first quarter of this year worldwide increased by 30% to about $755.1 billion.
The number of deals worth more than $10 billion jumped to 14 deals, compared to five deals during the same period last year, according to the latest Dealogic data.
Mergers and acquisitions rebounded in the first quarter after a disappointing performance in 2023, thanks to the return of mega deals, which sparked joy from investment bankers and lawyers who had been waiting for this return.
Investment bankers said board confidence in closing deals has improved on the back of strong earnings, potential interest rate cuts this year, and an active market..
“When you see larger deals being done, that’s a more direct sign that the market is back in health, because boards and CEOs, because of the nature of larger deals, will be more conservative when they approach them,” said Blair Efron, co-founder of investment bank Center View Partners. He added: “We believe that the activity we see today is moving in the right direction“
Merger and acquisition deal volumes in the United States rose 59% to $431.8 billion. European deals jumped 64%, while volumes in the Asia-Pacific region fell 40%. “A potential recovery in the market could provide a boost to mergers and acquisitions,” dealmakers said, Leveraged buyout volumes, which declined last year due to higher financing costs, fell 7% to $91 billion“
“We’re still waiting for the private equity business to pick up, that’s still the missing ingredient,” said Krishna Veeraraghavan, global co-head of the mergers and acquisitions group at law firm Paul Weiss Rifkind Wharton & Garrison.
During the first quarter, some large companies took advantage of strong valuations to finance large deals, while some investment-grade companies borrowed to achieve high-value targets..
Bankers and M&A lawyers noted that deal flows appear strong, as cash-rich buyers pursue their targets as recession fears ease..
“The base case is likely to be a soft landing scenario for the economy, with inflation under control,” said Evan Farman, co-head of global M&A at Bank of America. He added: “As a result, boards and management teams feel more comfortable about the future and are more likely to pursue deals.”“
The technology sector is traditionally the largest driver of deals, but it suffered a recession last year. It has since rebounded, bringing in the largest share of transactions, with volumes rising more than 42% to $153.8 billion..
Mega deals in oil and gas, which boosted volumes towards the end of last year, show no signs of slowing down, driven mainly by consolidation in the lucrative Permian shale basin..
Bankers are also anticipating a rebound in cross-border deals, as cash-flowing buyers look for transformative acquisitions. Cross-border volumes rose 17%% To $171.7 billion during the quarter.
said Jan Weber, head of M&A for Europe, Middle East and Africa at Morgan Stanley: “Companies remain cautious about the growth prospects in China and in Asia more broadly, and there is a lot of thinking around hedging against that. We are likely to see more deals in Europe and the US, some of which will be defensive.”