While some analysts had forecasted 2024 as the “year for M&A Resurgence,” it wound up instead as the less-catchy “year for M&A’s modest rebound.” Total M&A deal volume rose 15% from the decade low of 2023, as U.S. deal making pulled global activity from the doldrums. Persistent inflation and strict monetary policies, however, coupled with geopolitical unrest, continue to pump the brakes on M&A. As the hawkish anti-trust policies of the Biden Administration give way to the more deal-friendly environment expected during the incoming Trump Administration, tranaction activity is expected to accelerate in the months ahead.
DealPulse’s M&A database tracks publicly-announced deals over $25 million in value, harnessing both AI and attorneys to digest the granular deal points of each transaction to allow for comparisons across industries, specific deal terms, and both legal and financial advisors. Driven by investors’ interest in artificial intelligence and innovation, technology deals were hot this quarter as private equity firms continued to deploy their historically-high levels of dry powder. The oil and gas and life sciences sectors likewise remained active this quarter.
Source: A&O Shearman
Arthur J. Gallagher & Co.’s $13.45 billion acquisition of AssuredPartners and Quikrete Holdings, Inc.’s $11.5 billion merger with Summit Materials, Inc. led this quarter’s pack of announced deals, propelling their respective counsel into the coveted top of the law firm league table.
No stranger to the top 5, Kirkland & Ellis is back on top this quarter, advising on 6 announced deals, totaling over $29 billion combined. As is often the case, Kirkland appears in the deal filings of a large number of deals: Kirkland not only advised Arthur J. Gallagher & Co. in the Quikrete stock purchase, but also Amcor in its $8.4 billion acquisition of Berry Global Group, Inc. as well as 4 other large deals.
Advising on 5 deals this quarter valued at nearly $26 billion combined, Davis Polk snags the second spot. The firm jumped on and off the top 5 list throughout the year, but firmly cemented its position this quarter by advising Summit Materials in Quikrete’s takeover, as well as Siemens in its $10.6 billion deal with Altair Engineering.
Sidley Austin enters the top 5 this quarter, due largely to advising AssuredPartners across from Kirkland – and narrowly edging out Latham for the #3 spot. Latham is in the top 5 nearly every quarter due to its prolific representation in large deals. While the two firms are often on opposite sides of deals, this time Latham served as co-counsel alongside Davis Polk in representing Summit Materials. Finally, Skadden rounds out the top 5 by representing firms in 4 large deals this quarter.
Analysts are optimistic that 2025 will usher in a more robust M&A activity. The incoming Administration’s pledges indicate not only reduced antitrust scrutiny overall but also a more favorable regulatory environment that embraces AI and technology companies. With a number of high profile announced deals derailed – and an untold number of mergers never coming to fruition due to fear of regulators’ reaction – there is pent up demand for dealmaking. This column anticipates increased M&A activity ahead in 2025. The top law firms can expect to be busy closing more transactions, and we will be here to crown the top dealmakers.