In a dance performance, the most captivating performances are those in which two partners move together as one unit, their individual spins and twirls being woven into a seamless ensemble. It is the same for companies that merge and acquire in the hope of expansion beyond the borders. This could come in the form of an increase in financial power via an alliance or access to new market through a small Dutch acquisition. Global mergers and acquisitions, if done properly, can transform businesses and bring worldwide success.
With the business landscape undergoing dramatic shifts, CEOs across industries acknowledge that organic growth on its own is no longer sufficient. M&A is a great method to increase your reach quickly and connect with new customers in a world of ever-increasing change.
While global straight from the source M&A activity hit the lowest level in 2023, the industry is set to growth in 2024. Interest rates are currently higher than they ever have been before, because the global inflation rate is still high and central banks continue to increase their borrowing policies. This could increase the cost of M&A transactions.
M&A transactions are typically impacted by regulatory obstacles. They can add another layer of complexity to the process and cause it to slow down. M&A deals are also a collaborative and open process, requiring an extensive amount of communication between teams. Dealing with cross-border issues can be complicated and time-consuming.