When performing a dance recital, the most captivating performances are those where two dancers move in a single dance, with their individual turns and twirls are woven into a single seamless unit. Similar is the case of companies that merge or acquire with a view towards growth beyond borders. It could be in the form of an increase in financial strength through an alliance or access to a new markets via a tiny Dutch acquisition. Global mergers and acquisitions, if executed correctly, can transform businesses and lead to global success.
CEOs from all industries agree that organic growth is not enough. M&A is a great strategy to grow quickly and reach new customers in a world that is constantly changing.
While the world’s M&A activity reached a record low in 2023, the industry is set to see a recovery in 2024. With global inflation remaining at a high rate and central banks implementing tighter borrowing policies, interest rates are higher than they were in recent years, which could raise the cost of financing M&A transactions.
M&A transactions are usually impacted by regulatory obstacles. These can add a layer complexity to the process and can slow it down. In addition, M&A is a very human affair that requires collaboration and communication between teams. Making it to the final hurdle can be time-consuming and complex particularly when dealing with cross-border issues.
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