On The Rise: Chicago M&A

Recently in the United States (“U.S.”), mergers and acquisitions (M&A) activity saw a notable increase in the third quarter?as?compared to the same period last year. However, this increase in activity?is still somewhat slowed when?compared to earlier quarters in 2024. This deceleration reflected a cautious approach by corporate leaders, many of whom opted to delay dealmaking amid uncertainty tied to the recent U.S. presidential election. According to recent data, a total of 558 acquisitions took place in Q3, down from 621 deals in Q2 and 609 in Q1.

Despite this dip, M&A activity in the third quarter of 2024 remained significantly higher than the same quarter in 2023, which saw only 318 deals. This boost in deal volume can be attributed to reduced inflationary pressure and a stable job market, both of which have helped alleviate economic concerns and boost corporate confidence.

On a regional level, major U.S. cities?have?reported strong deal activity, with some cities seeing their numbers double or even triple year-over-year. Deal values in these areas also saw considerable growth, highlighting the continued attractiveness of regional markets to investors and corporations alike.

For the year so far, the volume of deals and their combined values reflect a strong M&A landscape across the U.S.?This fact is further?supported by cash reserves and high stock prices. Private equity firms and corporations are holding significant unused capital, that could potentially drive a surge in transactions once the political uncertainty has settled.

Current economic conditions are also favorable to M&A, with recent interest rate cuts from the Federal Reserve and expectations for further reductions expected to fuel further deal interest.?

After a challenging previous year for M&A’s, 2025 is anticipated to offer a more conducive environment for transactions as companies recalibrate their strategic plans and respond to evolving market demands. However, borrowing costs are still higher than they were over the past decade, which may limit the volume of deals, as financing is not as inexpensive or accessible as it was in previous years.

While the era of low-cost financing may not return to prior levels, the landscape in 2025 is shaping up to support robust M&A activity, with available capital and strategic goals likely to drive continued momentum across various sectors.

For more information on Mergers and Acquisitions Contact the qualified Attorneys at Rock Fusco & Connelly, LLC.