Global mergers and acquisitions are a crucial component of many corporate growth strategies, allowing access to new markets, industries customers, products and technologies. They also increase the strength of a company’s financial position through greater scale and reach. Companies must take into account a variety of factors prior to making international acquisitions or divestitures. These include taxation, regulatory concerns and cultural differences.

In 2024, the challenges of capital markets and uncertain macroeconomic conditions have weighed on deal activity. We anticipate M&A activity to increase in https://vdr-tips.blog/transaction-rooms-mobile-apps-main-functions 2024 as capital markets and macroeconomic conditions improve.

M&A can be triggered by other strategic goals such as consolidation or digital innovation. AI and predictive robots and smart factories, for example, are driving manufacturing efficiency in the industrial sector.

A key strategy is to acquire companies in different regions that offer similar products or services to expand market reach and customer base. This is known as market extension. PepsiCo bought Pizza Hut in order to boost its soft drinks sales.

M&A trends are also shifting to reduce increased geopolitical risks and focusing on sectors that have stronger market outlooks, investing in vertical integration and enhancing supply chain resiliency. In addition, as the supply of cash and debt decreases we expect sellers and buyers to embrace more complex structures in order to bridge the gap in valuations, such as stock swaps or minority stake sales as well as earnouts. This could mean using private equity funds to make the deal viable.