Global Mergers and Acquisitions
In a dance performance, the most mesmerizing performances are those in which two dancers perform as one unit, their individual spins and twirls woven into a seamless ensemble. This is the case of businesses that merge or acquire with an eye towards growth beyond borders. This could take the form an increase in financial power through an alliance or access to a new market through a small Dutch acquisition. Whatever the reason, if executed correctly, global mergers and acquisitions could transform businesses and trigger an environment that can lead to success throughout the world.
CEOs from all industries are of the opinion that organic growth is no longer enough. M&A is a great strategy to grow quickly and reach new customers in a world of ever-changing changes.
While global M&A activity reached a record low in 2023. However, the industry is expected to increase in 2024. The interest rates are higher than ever before, as global inflation remains high and central banks continue to increase their borrowing policies. This could increase the cost of M&A transactions.
M&A deals are also frequently affected by regulatory hurdles, which can add another layer of complexity and slow down the process. M&A deals are also a highly collaborative and asynchronous process, requiring plenty of communication between teams. Making it to the end line can be time-consuming and complex, especially when dealing with cross-border issues.