2024 M&A Year in Review - Flipbook - Page 93
M&A Year in Review | 2024
Sectors to Watch
Consumer
Energy
Dealmakers enter 2025 with cautious optimism
around a resurgence in consumer M&A, even as
broader market headwinds persist. Ongoing
challenges such as trade tensions, tariffs,
geopolitical conflicts, and climate-related risks
continue to create uncertainty.
In the United States, energy M&A activity is expected to
remain dynamic throughout 2025, with a notable shift
toward oil and gas. Recent executive actions by the
Trump administration that favor fossil fuel development
may slow clean energy investment, particularly as
environmental regulations are rolled back and the future
of renewable energy tax credits remains uncertain.
While these headwinds could dampen short-term deal
flow, consolidation within renewable energy platforms
and sustained interest in energy transition opportunities
— particularly in voluntary carbon markets and select
emerging technologies — is expected to continue to
generate transaction activity.
In parallel, inflationary pressures and relatively high
interest rates are weighing upon consumer
sentiment. Despite these factors, there are signs that
the sector could outperform 2024 both in deal value
and volume.
As the year progresses, consumer M&A momentum
is expected to strengthen, driven by stabilizing
interest rates and cooling global inflation. Sector
valuations are poised for an uptick as investor
confidence in consumer assets rebounds. Private
equity firms are anticipated to pursue exits of longheld assets and to deploy dry powder, while strategic
players focus on repositioning their portfolios
through transformative M&A.
Both financial sponsors and strategic buyers will
closely monitor inflation, following a higher-thanexpected increase in early 2025, as well as the impact
of tariffs. However, with most indicators expected to
trend favorably, consumer M&A is well-positioned
for renewed deal activity and growing momentum in
the year ahead.
See our 2025 Panoramic: Luxury & Fashion guide
for more insights.
In Europe, the energy sector remains oriented toward
energy security, with ongoing investment in renewable
development and platform optimization. M&A activity
is supported by growing investment in battery energy
storage systems and grid infrastructure. The European
Union remains committed to green hydrogen, though
market expectations for adoption have been tempered,
likely reducing related deal flow. Political uncertainties
and the risk of a trade war could further dampen
overall deal activity in the region.
In Asia, energy is a sector to watch for its growth
potential, government-backed clean energy initiatives,
and increased M&A activity in renewables, LNG, and
battery storage. China, India, and Japan are accelerating
their energy transitions through policy support and
investment in solar, hydrogen, and grid infrastructure.
See our Energy Hub for more insights.
93
