In 2022 the value of strategic M&A deals fell to its lowest level in a decade, and the gap between seller and buyer valuations remained large. Certain companies made the most of the volatile market to pursue their M&A goals.

One example is the successful merger of United Technologies and Rockwell Collins which resulted in the world’s most advanced defense and aerospace systems manufacturing company. The $135 billion deal was a win for both sellers and buyers since it allowed them to expand their customer base and increase revenue.

In another instance, LSEG (the owner of Europe’s most important financial markets) acquired a competitor in the US NYSEG in order to build the world’s largest market data provider. This acquisition strategy will help LSEG better serve its customers by providing them with comprehensive market data trading tools, analytics and analytics, as well as risk management services across international financial markets.

The success of vertical M&A can also be seen in the acquisition of Aetna for $70-billion by CVS Health. This deal transformed the healthcare sector by M&A deals combining health and pharmacy insurance services into a single company. The energy industry also witnessed a vertical deal in the form of ONEOK’s acquisition of Magellan Midstream Partners L.P for a staggering $18.8 billion and is expected transform the oil and gas infrastructure. Similar to the way it was done, the state-owned Chinese company ChemChina merged its rival Sinochem into the world’s largest industrial chemicals conglomerate. This is an obvious sign of the importance of leveraging M&A in times of uncertainty and change.