SI Partners has published its Global M&A Insights Report 2024, with the mergers and acquisitions advisory firm forecasting growth in M&A activity in the new year.

The report, released in the aftermath of the Omnicom x IPG mega merger, delves into the tactics of both legacy groups such as WPP and contemporary players like Publicis.

Key findings from the report highlight the increasing adoption of M&A strategies by media giants for 2025, the growing influence of private equity in shaping acquisitions in the media and tech sectors, and the pivotal role of AI in transforming businesses and driving future growth. The report is based on over 1,150 transactions involving 125 of the most active buyers in the talent-based and tech-enabled services sectors.

The report predicts an acceleration in M&A activity in the marketing services space in 2025, driven by Private Equity investment. Private equity buyers represent over a third of M&A activity. Companies that are moving beyond AI tools to embrace AI-operating models are positioning themselves as future leaders. Legacy marketing groups like WPP are under pressure to replicate the success of Publicis with Sapient, while contemporary players focus on integrating data and tech capabilities.

In technology consulting, Accenture leads with 26 acquisitions in 2024. The US continues to dominate geographically, but Southeast Asia and the Middle East are emerging as key regions for buyers seeking digital transformation and tech-led services.

"The M&A market is recovering, but patience is essential. Sellers are driving activity where they can demonstrate strong 2024 performance, while buyers, particularly PE firms, are recalibrating strategies to focus on quality over quantity," said Director at SI Partners, Julia Vargiu. "The next year is set to redefine the M&A market. Larger players are rethinking strategies, whether consolidating or becoming acquisition targets themselves. Innovative businesses that are prepared to lead with bold moves and adopt cutting-edge AI will reap the rewards. This is a moment for market leaders to set themselves apart."

Director at SI Partners, Michael Chin, said: "Foreign buyers continue to view Australia as an attractive APAC hub and with the ongoing economic and geo-political challenges in China, there is probably an even greater window of opportunity for Australia to remain in the spotlight."