Leading U.S. and international law firms are handling fewer corporate deals in 2024, but the ones they manage are more valuable than the previous year. This pattern mirrors a broader trend in global mergers and acquisitions (M&A) activity, marked by a significant rise in deal values but a decrease in deal volumes.
Global M&A Value Sees Significant Growth
In the first nine months of 2024, the value of announced global M&A deals hit $2.3 trillion—a 16% increase from the same period last year. This represents the strongest first nine-month period for dealmaking since 2022, according to data released by the London Stock Exchange Group (LSEG). While the financial value of deals soared, the number of transactions plummeted to an eight-year low. Over 35,500 deals were announced, a sharp 20% drop from the same timeframe in 2023.
Kirkland & Ellis Leads in Principal Advising
Chicago-based Kirkland & Ellis maintained its position as the top principal adviser in LSEG’s rankings by deal value, working on 556 global deals worth a staggering $295 billion. However, Skadden, Arps, Slate, Meagher & Flom edged out Kirkland as the top adviser in overall global announced deals, handling 159 deals valued at $331 billion, including those withdrawn or called off.
One of the year’s standout deals, the $36 billion acquisition of Cheez-It maker Kellanova by candy giant Mars, saw Kirkland and Skadden on opposing sides. Skadden advised Mars, while Kirkland represented Kellanova.
Goodwin Procter and Latham & Watkins Among Top Players
Goodwin Procter, a Boston-based firm, secured the No. 1 spot for the highest number of deals, overseeing 603 transactions worth $91 billion. Meanwhile, Latham & Watkins ranked second in terms of deal value, handling 458 global deals valued at $273 billion. Notable transactions for Latham included advising SRS Distribution in its acquisition by Home Depot and assisting Skydance Media with its acquisition of Paramount Global, one of Hollywood’s oldest film studios.
Market Uncertainty Lingers Despite Strong Activity
Despite the rise in M&A deal values, market uncertainty remains a concern for dealmakers. According to Mark Bekheit, Latham’s global vice chair of M&A, headwinds persist in the market, including ongoing scrutiny from government agencies and the recent U.S. Federal Reserve rate cut. Some dealmakers expect a slowdown in the fourth quarter as companies delay major transactions until after the upcoming U.S. elections. However, Bekheit remains optimistic about continued deal activity through the end of the year, noting that many unannounced deals are still in progress.
Outlook for Q4 and 2025 Remains Optimistic
Other legal experts share a hopeful outlook for the rest of the year. Michael Weisser of Kirkland & Ellis pointed to a strong M&A pipeline, while also noting that external factors such as the U.S. elections and geopolitical events could influence the market moving into 2025. David Barkus, co-leader of Holland & Knight’s corporate M&A practice, expects an increase in deal activity regardless of the election’s outcome.
In conclusion, while the number of M&A transactions is decreasing, the deals that are closing are larger and reflect a robust market for corporate mergers and acquisitions. Despite potential challenges, the outlook for M&A activity remains optimistic as law firms continue to adapt to evolving market conditions.