Global mergers and acquisitions are a crucial element of a variety of corporate growth strategies, providing access to new industries, markets, customers, products and technologies. They also increase the strength of your financials through a greater scale and reach. Companies must take into consideration a range of factors before making international acquisitions or divestitures. These include regulatory, taxation and cultural differences.

In 2024 the complexities Capital raising process of financial markets and uncertain macroeconomic conditions have weighed heavily on deal activity. However we anticipate M&A to pick up in the second half of the year as these headwinds ease and the outcomes of various elections are known.

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

One of the most effective strategies is to buy companies in different regions that offer similar products or services, to expand market reach and customer base. This is known as market expansion. PepsiCo purchased Pizza Hut in order to increase sales of its soft drinks.

M&A trends include a shift in the direction of reducing risks to geopolitics by focusing on markets with better outlooks, investing vertically and increasing supply chain resilience. As cash and debt availability shrinks, we expect buyers and sellers to take on complex structures to fill in the gaps in valuation, such as stock swaps, minority stake sales and earnouts. This could involve using private equity funds to ensure the deal is viable.