RKL Reports Merger and Acquisition Activity Down in 2024
1 | Apr 14, 2025 | EIN
RKL Advisors reported a decrease in both regional and national M&A activity in 2024, with transactions mirroring pandemic-level lows. Compared to 2023, transactions in the region dropped by 5%, citing challenging macroeconomic conditions and election cycle uncertainties. Despite some relief from interest rate cuts by the Fed, businesses faced tight labor markets and inflation, making deal environments tough. However, optimism for increased activity in 2025 is supported by a favorable interest rate environment and aging sellers. Private equity maintained a significant presence in Suburban Philadelphia, although the overall number of PE-backed deals in the region fell. Key sectors remained manufacturing, distribution, financial services, and TMT. The Lehigh Valley saw increased activity, contrasting other regional markets.
Sectors
- Mergers & Acquisitions
- Private Equity
- Financial Services
- Technology, Media & Telecommunications
Geography
- United States – The focus is on the U.S. market, particularly on regional M&A activity in areas like Philadelphia and its suburbs.
- Pennsylvania – Specific regions within Pennsylvania such as Berks, Capital Region, Greater York, Lancaster, and Lehigh Valley are discussed.
Industry
- Mergers & Acquisitions – The article focuses on M&A activities, trends, and market conditions.
- Private Equity – Highlights the involvement of private equity firms and sponsor-backed companies in regional transactions.
- Financial Services – The financial services sector is a notable industry involved in the transactions discussed.
- Technology, Media & Telecommunications – TMT is one of the leading sectors in regional M&A transactions.
Financials
- 368 transactions – Total number of M&A transactions reported in 2024.
- 188 transactions by PE firms – Number of transactions involving private equity or sponsor-backed buyers in 2024.
- 5% decrease – Decline in the number of transactions compared to 2023.
- 74% – Percentage of PE-related transactions in the Suburban Philadelphia market.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| RKL Advisors | Report Source | Company | Provides analysis and advisory on M&A activities. |
| Federal Reserve | Economic Influence | Government | Issued a series of rate cuts impacting the M&A environment. |
| Rentokil North America | Buyer | Company | Previously active in the Berk's M&A market but absent in 2024. |