In our Q3 2024 report, we capture the key developments and outlooks across Private Placements, ECM and Debt Capital Solutions, alongside Healthcare, Software & Fintech, Energy Transition & Sustainability, Industrial Tech, Business & Tech and NextGen Consumer sectors. This underscores Bryan Garnier's integral role in navigating and facilitating significant transactions amidst evolving market conditions.
Private Placements, ECM, and Debt
Private capital markets are gradually recovering from 2022’s public market adjustments, with companies navigating capital raising challenges and investors exploring new liquidity routes. European startups raised over EUR 29bn in H1 2024, a 12% increase from last year, driven by AI advancements.
The stock market remained strong in 2024, with the S&P 500 up +20% and NASDAQ up +19% YTD by September, bouncing back after a volatile August. In Europe, the STOXX 600 rose +2.8% in Q3, supported by improved inflation figures and an ECB rate cut.
ECM transactions slowed in Q3 due to seasonal trends and market volatility, with global volumes down -36% from Q3 2023.
Monetary policy in Europe and the US is shifting towards easing, aiming to adjust for slowing inflation. European credit spreads have stabilised between 275-350 bps in 2024, a marked improvement from the over 500 bps volatility seen in 2023.
Healthcare
Biopharma
Venture funding saw a 25% rebound to USD 9.8Bn, led by large-scale deals, though smaller transactions faced challenges. M&A activity remained strong, while the IPO market continued to see limited movement, with few listings, mainly from mature companies.
Medtech
The Medtech sector maintained steady growth, with a focus on larger transactions in both private placements and M&A. Private equity interest in healthcare software increased, while Medtech stocks continued to perform well, and IPO activity started to show signs of revival.
Healthcare Services
The diagnostic imaging sector is experiencing growth due to increased patient demand, prompting strategic acquisitions to expand operations. Conversely, the private care home sector is facing challenges that hinder transaction completions, highlighting the importance of effective regulatory platforms. Additionally, cross-border expansion in healthcare continues to be a significant trend, while the pharma outsourcing industry is navigating potential regulatory changes that may impact operational strategies.
Software & Fintech
Software
The European TMT market experienced robust activity in H1 2024 despite ongoing macroeconomic challenges. While deal volume was down 8.9% compared to H1 2023, cumulative deal value surged by 102.5% year-on-year, indicating a return to higher pricing driven by competition for high-quality assets, particularly in the large-cap software segment.
Fintech
The global fintech sector experienced fluctuating funding, decreasing from USD 62.3 billion to USD 51.9 billion, while M&A activity remained strong and the IPO market showed early revival signs. In Europe, fintech investment fell from USD 19.1 billion to USD 11.4 billion, yet significant transactions continued, particularly in the payments and wealthtech sectors, with key trends including the convergence of wealthtech and healthtech, and increasing interest in digital assets following the SEC’s approval of Bitcoin ETFs.
Energy Transition & Sustainability
Mobility
In the European EV charging ecosystem, independent CPOs are increasingly acquiring assets to expand their charging station deployments. Many mobility service providers are now EBITDA or cash flow positive, drawing interest from private equity firms and paving the way for potential IPOs in 2025-2026, while the battery segment faces delays in gigafactory projects due to rising costs and logistical challenges.
Agtech & foodtech
After several challenging quarters, the European food and agtech sector is witnessing increased deal activity, particularly in alternative proteins and biologicals, with additional transactions anticipated soon. Investors are cautiously approaching valuations amid uncertain exit conditions, emphasising the importance of operational and capital efficiency in fundraising for companies with strong commercial pipelines and industrialisation roadmaps.
Green & recycled plastics
Global plastics production is outpacing population growth, prompting interest in new recycling methods beyond traditional mechanical recycling, which often yields lower-quality materials. Chemical and fiber-to-fiber recycling are emerging as high-quality alternatives, potentially enabling brand owners to meet sustainability goals and leading to greater adoption of these advanced technologies.
Green gas & biofuels
Investments over USD 1 billion in ultra-low carbon e-fuels mark a shift from traditional biofuels to sustainable alternatives like waste and non-food crops, increasing competition for feedstock access. Simultaneously, the expanding power demands of renewables highlight the urgent need for improved grid infrastructure.
Industrial Tech
Cybersecurity saw strong M&A and financing, driven by AI security and cloud infrastructure, with new regulations boosting European growth. In industrial automation, stable demand and AI integration continue to fuel consolidation, especially in non-traditional sectors like agriculture.
The satcom market risks becoming a near-duopoly, with SpaceX and possibly Amazon gaining from unmatched economies of scale.
Business & Tech-Enabled Services
Engineering
R&D investments are driving engineering growth, but the sector faces recruitment challenges, especially in new technology roles with high turnover. Engineering is adapting to green and digital transitions, focusing on low-carbon projects. Market consolidation is advancing, with firms pursuing acquisitions to scale up.
Digital Agencies
Digital agencies have outperformed traditional firms in volatile markets by delivering measurable results and enhancing customer engagement. The sector’s quarterly deal counts have remained stable, with a notable increase in invested capital compared to last year.
The Consulting Market
The consulting sector is experiencing growth driven by trends in digitalisation and digital transformation, management consulting, rising Environmental, Social, and Governance (ESG) standards, and the emergence of HR consulting.
Testing, Inspection & Certification (TIC)
The fragmented TIC sector is witnessing ongoing M&A activity driven by a strengthening regulatory environment, characterised by four key trends: rising ESG standards, digitalisation through new technologies and AI enhancing productivity, market extension into adjacent areas like compliance and consulting, and a stable interest rate environment with trading and transaction multiples remaining high.
NextGen Consumer
M&A activity in the consumer, retail, and leisure sectors surged in July but declined in August and September, suggesting delays in pre-summer deals. Overall, Europe outperformed North America in Q3 amid valuation gaps and election uncertainties.
About Bryan, Garnier & Co
Bryan, Garnier & Co is a European growth investment bank that helps healthcare and technology companies become global champions. By combining extensive sector expertise with an entrepreneurial mindset, Bryan Garnier provides companies and their investors with independent growth strategic advice, and privileged access to buyers and capital in Europe, the US and Asia.
As a full-service investment bank, the firm offering includes private and public growth financing solutions, mergers and acquisitions (M&A) advisory, research insights, and institutional sales & execution. Founded in 1996, Bryan Garnier & Co is an independent partnership with around 200 employees located in major financial centres in Europe and the US.