The American M&A landscape in 2024 proved that even in uncertain economic times, companies still see acquisition as a path to growth. This year brought several industry-changing deals, with companies spending well over $180 billion on major acquisitions across energy, finance, retail, and technology sectors.
The US’ Biggest M&A Deals of 2024
ExxonMobil Doubles Down on American Oil
ExxonMobil kicked off the year's largest transaction, acquiring Pioneer Natural Resources in an all-stock deal valued at $59.5 billion. This purchase notably expanded ExxonMobil's footprint in the Permian Basin, a region known for its rich oil deposits. The acquisition doubled the company's production capability in this crucial area, showing that despite global pushes toward renewable energy, traditional oil and gas still command major investment.
Roark Capital Acquires Subway
Roark Capital's $9.6 billion Subway acquisition fits well with their existing restaurant portfolio. The private equity firm already owns several major restaurant chains, including Dunkin' and Arby's. This experience should help them navigate Subway's challenges with franchise relations and menu updates.
The deal gives Roark control of one of the world's largest restaurant chains by location count. Subway's global presence provides opportunities for operational improvements and menu modernization. Roark's experience with food service brands could help revitalize the Subway brand.
T-Mobile's Coverage Expansion
T-Mobile's $4.4 billion acquisition of US Cellular's wireless spectrum helps T-Mobile improve its network coverage in rural areas, historically a weak point compared to competitors AT&T and Verizon. This spectrum acquisition could help T-Mobile attract more customers in underserved markets.
Home Depot's Professional Push
Home Depot made headlines with its $18.25 billion acquisition of SRS Distribution, marking one of the largest retail-focused deals of the year. The move significantly expanded Home Depot's reach in professional contractor supplies, adding specialized roofing, landscaping, and pool supply capabilities to its portfolio. This purchase increased Home Depot's total addressable market by approximately $50 billion, pushing it toward the $1 trillion mark.
Johnson & Johnson Invest in Medical Tech
Johnson & Johnson acquired Shockwave Medical, showing their commitment to cutting-edge medical technology. The $17 billion deal helps J&J stay competitive in the fast-evolving medical device market. Shockwave's technology could become a standard treatment option for certain cardiovascular conditions. This acquisition positions J&J well against other medical device companies focusing on minimally invasive treatments.
Capital One's Financial Services Consolidation
The Capital One-Discover merger, valued at $35 billion, reshapes consumer banking and credit cards. Capital One gains a payment network, reducing its dependence on Visa and Mastercard. The combined company would have significant scale in both credit cards and banking services.
Squarespace Acquired by Private Equity
Permira's $6.9 billion Squarespace acquisition shows private equity's continued interest in established tech platforms. Taking Squarespace private could give the company more flexibility to invest in long-term growth. The website building platform has strong recurring revenue from subscriptions, making it an attractive investment.
Industry-Specific Trends
The Future of Digital
Permira's Squarespace acquisition highlights how private equity views digital platform companies. Despite tech sector volatility, investors see value in established platforms with strong cash flow.
Energy Sector Dynamics
The energy sector's consolidation reflects broader industry challenges. Major players face pressure to maintain production while managing environmental concerns. The ExxonMobil deal suggests that scale becomes increasingly important for managing these competing demands.
Retail Evolution
Home Depot's move into specialized distribution reveals how traditional retailers adapt to changing market conditions. The line between retail and distribution continues to blur as companies seek to control more of their supply chain.
Healthcare Innovation
Johnson & Johnson's acquisition of Shockwave Medical represents a larger trend in healthcare technology investment. Medical device companies increasingly focus on minimally invasive procedures and innovative treatment methods.
Getting into M&A: Career Opportunities
Interested in joining this vibrant sector? The US market offers numerous entry points for aspiring M&A professionals. Major financial centers like New York, Chicago, and San Francisco remain hubs for such opportunities, with constant demand for expertise in due diligence and financial analysis.
Roles in investment banking, corporate strategy, and M&A consulting continue expanding across American markets. Banking centers in Boston, Houston, and Los Angeles also offer growing opportunities. Candidates with skills in finance, legal due diligence, and market analysis are particularly sought after. Corporate development positions at major companies provide another path into the field, while consulting firms regularly hire professionals for their M&A practice groups.
Deal Financing Trends
The financing structure of 2024's deals reflect current market conditions. ExxonMobil's all-stock transaction shows how companies can use equity effectively when their stock trades at strong valuations. This approach helps preserve cash while giving selling shareholders potential upside in the combined company.
Private equity buyers like Roark Capital and Permira typically employed a mix of debt and equity financing, despite higher interest rates. Roark's Subway acquisition and Permira's Squarespace purchase demonstrate that traditional leveraged buyout approaches remain viable for companies with stable cash flows.
Companies in 2024 showed increased attention to risk management in deal structures. Many included specific provisions for regulatory approval, particularly in sensitive sectors like financial services and telecommunications. The Capital One-Discover merger, for instance, includes detailed contingency plans for regulatory requirements.
These deal structures often reflected lessons learned from previous mergers. Companies built in longer timelines for regulatory review and included more specific performance conditions. This approach helps manage expectations and provides clearer frameworks for dealing with potential challenges during the integration process.
Looking Forward
Big business made bold moves this year. ExxonMobil bet heavily on American oil. Home Depot doubled down on professional customers. Capital One decided it wanted its own payment network. These choices tell us something important about American business - when companies see an opportunity, they'll still write big checks, even in uncertain times. The real story of 2024's mergers isn't just about who bought what, but about the conviction it took to make these deals happen.
The question for 2025 isn't whether we'll see more major acquisitions, but which industries will drive them. Energy, finance and technology led the way this year. Next year's headlines are still waiting to be written.
