In a dance recital, the most mesmerizing performances are those where two dancers work as one unit, their individual turns and twirls are woven into a unified whole. The same can be said of companies that combine or acquire with a view towards expansion beyond borders. This could be in the form of a boost in financial power via an alliance or access to a brand new markets via a tiny Dutch acquisition. If done right global mergers and acquisitions could transform businesses and create an ensuing chain reaction that results in success throughout the world.
With the business world experiencing seismic shifts, CEOs across industries recognize that organic growth by itself is no longer enough. In an environment where the pace of change is increasing, M&A can be an efficient way to rapidly scale and reach new customers.
The global M&A industry has reached the lowest level in 2023. However it is expected to rebound in 2024. With global inflation at a high level and central banks implementing stricter borrowing policies, interest rates are higher than they were in recent years, which could raise the cost of financing M&A transactions.
M&A deals are also frequently affected by regulatory hurdles which can add another layer of complexity and slow the process. In addition, M&A is a very human process with lots of collaboration and communication between teams. The process of getting the deal through the finish line can be a lengthy and difficult process particularly when dealing with international issues.