In 2022 the value of strategic M&A declined to its lowest level in M&A deals a decade and the gap between seller and buyer valuations was still large. However, despite the difficult environment, some firms took advantage of the fluctuations to pursue their M&A goals.

A successful merger between United Technologies & Rockwell Collins created the world’s leading aerospace and defense system manufacturing company. The $135 billion deal was a win for both sellers and buyers, as it allowed them to expand their client base and boost revenue.

In another example, LSEG, the owner of Europe’s biggest financial markets, acquired a US-based competitor NYSEG to create the world’s biggest global market data provider. This strategic acquisition will allow LSEG better serve its customers by providing them with complete market data including trading tools and analytics, in addition to risk management services across all international financial markets.

The success of vertical M&A is also evident in the $70-billion acquisition of Aetna by CVS Health, which transformed the healthcare landscape by amalgamating health insurance and pharmacy services into one. The energy sector also experienced a vertical merger form of ONEOK’s purchase of Magellan midstream Partners L.P. for a staggering $18.8 Billion. This deal is expected to change the shape of oil and gas infrastructure. In a similar way the state-owned Chinese company ChemChina merged its rival Sinochem into the world’s biggest industrial chemical conglomerate. This is a clear indication that it is important to leverage M&A in times of uncertainty and changes.