Hey there!
It's time for another Flyby newsletter, where we help you stay sharp with innovation trends and insights.
In today’s newsletter:
- Quick Hits: Overcoming Corporate Venturing Challenges: Lessons from Leading Companies
- Research: Navigating Geopolitical Challenges in Global M&A
- Industry Radar: To keep you ahead on industry trends
Let’s open the vault
🗞️ Quick Hits
Short & sweet—news that caught our eye this week.
📊 Discover how companies overcome common hurdles in corporate venturing, such as integrating start-up innovations and fostering collaboration across business units. Learn from Siemens' approach of partnering with universities to develop new product lines, and see how SAP's accelerator program boosted early adoption of their platform. These insights reveal strategies for creating impactful innovation ecosystems. Dive deeper into these case studies to uncover more transformative solutions.
Explore more success stories here
Source: IESE Business School
📡 Research - Navigating Geopolitical Challenges in Global M&A
The research examines the resilience of the global M&A market, highlighting key trends and influences. Despite challenges, the market has shown growth driven by strategic initiatives and macroeconomic conditions.
- M&A Market Resilience and Growth: In 2024, M&A activity increased by 12% to $3.4 trillion, with significant resilience in North America. This growth was fueled by economic recovery and strategic dealmaking, especially in sectors like technology and financial services.
- Private Equity Influence: Private equity firms, holding over $2 trillion in unused capital, are aggressively pursuing deals, extending exit timelines to 8.5 years. Their involvement is crucial in driving momentum across various industries, anticipating more activity in 2025.
- Challenges and Strategic Shifts: Geopolitical and regulatory challenges pose risks, yet companies are using M&A for strategic repositioning. This involves restructuring portfolios and leveraging AI for deal origination and integration, focusing on mid-sized deals over megadeals.
Check out the research on our website
Source: McKinsey & Company
📡 Industry Radar
Stay ahead of the curve— some of the hottest news and trends across our reference industries paired with some bonus insights from FounderNest.
🔋 Oil and Energy - Global Oil Market Dynamics for 2025
The IEA reports a rise in global oil demand, projected to grow by 1.05 mb/d in 2025, driven by economic improvements and colder weather. Supply is also expected to increase, with non-OPEC+ production contributing significantly. New sanctions on Russia and Iran may influence supply chains, while oil prices have surged due to these geopolitical tensions and weather impacts.
🍏 Food and Beverages - Rising M&A Trends and Regulatory Watch in Food and Beverage
M&A activity in the food and beverage sector is projected to rise in 2025, focusing on smaller bolt-on deals to expand in trending areas like health and wellness. Improved conditions, such as lower interest rates and healthier balance sheets, are fostering this trend. However, potential regulatory shifts under a new administration could impact the landscape, requiring close monitoring.
🏥 Healthcare - Rising Shareholder Payouts in Healthcare
Research shows that shareholder payouts from major healthcare companies rose 315% from 2001 to 2022, reaching $2.6 trillion. The study suggests these companies prioritize rewarding investors over reinvesting in patient care, potentially contributing to higher healthcare costs. Policymakers are encouraged to promote reinvestment in patient services.
🤖 Technology - Challenges and Opportunities in Tech M&A Integration
Tech acquisitions often miss product synergy goals due to inadequate planning and funding. Current market conditions make these synergies crucial, as base growth alone isn't enough. Successful acquirers focus on customer needs, align key talent, and strategically invest to achieve long-term value, navigating valuation gaps and macroeconomic challenges.
📦 Retail and Logistics - Adapting Retail M&A Strategies Amid Regulatory Challenges
In 2024, retail M&A activity rebounded, driven by megadeals like ACT's $47 billion bid for Seven & I. Despite regulatory hurdles, retailers continue to pursue scale through M&A, adapting strategies with early antitrust due diligence and leveraging AI for efficiency. This trend supports expanding capabilities beyond core operations to future-proof growth.
FounderNest Bonus: To identify companies similar to Seven & I Holdings, we used our Similar Companies tool. Here are some of the results we found. Find out how we can help—contact us for more information.
👩🌾 Farming and Agriculture - Positive Outlook for Farm Sector Income in 2025
In 2025, net farm income is projected to rise by 29.5%, reaching $180.1 billion, following declines in previous years. Key drivers include increased government payments from disaster assistance and improved production efficiencies, despite declining cash receipts from crops like corn and soybeans. Lower production expenses also contribute to the favorable financial forecast.
📈 Banking - Banks Favor Partnerships with Fintechs for Innovation
In 2025, banks are increasingly partnering with fintech firms rather than developing technologies internally to drive innovation. These collaborations allow banks to rapidly adopt cutting-edge solutions like AI and embedded finance, enhancing capabilities while maintaining focus on compliance and risk management.
💊 Pharma - New Meningococcal Vaccine and Regulatory Implications
The FDA approved GSK's Penmenvy, a "5-in-1" meningococcal vaccine for ages 10-25, aiming to simplify immunization and increase vaccination rates. This comes amid evolving vaccine guidelines and potential regulatory changes under HHS Secretary Robert F. Kennedy Jr.
FounderNest Bonus: To delve into GSK's developments in this area, we used our Competitive Intelligence tool to investigate existing products. Here are some insights we've uncovered. Find out how we can help—contact us for more information!
✈️ Aeronautics and Aviation - M&A: Rising Multiples and Private Equity Dominance
In Q1 2025, aerospace M&A saw a rise in EBITDA and revenue multiples, with defense contracting standing out due to lucrative government contracts. Private equity continues to dominate, adopting a buy-and-build strategy. Despite fewer deals, valuations remain attractive, signaling potential recovery in the sector.
🏭 Manufacturing - Industrial Manufacturing M&A Poised for Growth in 2025
In 2025, industrial manufacturing M&A activity is expected to rise, driven by favorable economic conditions and policy shifts post-U.S. elections. Key investment areas include digitization, sustainability, and infrastructure upgrades. The focus remains on strategic mid-market deals and divestitures to enhance core operations.
🚘 Automotive - Extended-Range EVs as a Bridge to Electrification
With BEV sales growth slowing, extended-range electric vehicles (EREVs) offer a promising solution to ease range anxiety and cost concerns. EREVs, with longer electric ranges, appeal to consumers hesitant about pure BEVs, and could gain traction in the U.S. market due to favorable regulations. They provide a cost-effective transition from ICE vehicles, but consumer education and strategic OEM investment are essential.
FounderNest Bonus: We wanted to understand the technology behind Electric Vehicles, so we used our Market Intelligence tool to explore this further. Below are a few insights we've gathered. Find out how we can help—contact us for more information!
