In recitals the most memorable performances occur when two performers perform as one as their individual spins twists, and weaves into a seamless whole. Similar is the case of companies that merge or acquire with a view toward growth beyond borders. This could be in the form of a boost in financial strength through an alliance or access to new markets via a tiny Dutch acquisition. Whatever the case, when done right global mergers and acquisitions can change businesses and create an unintended chain reaction that leads to successful outcomes across the globe.
With the business landscape undergoing radical shifts, CEOs from different industries are of the opinion that organic growth is no longer enough. In an environment where the speed of change is constantly increasing, M&A can be an efficient method to rapidly scale and reach new customers.
While global M&A activity hit an all-time low in 2023, the industry is set to see a increase in 2024. Interest rates are higher now than they have ever been, since global inflation remains high and central banks continue to tighten their borrowing policies. This could increase the cost of M&A transactions.
M&A deals are also frequently impacted by regulatory hurdles, which can add an additional layer of complexity, and can slow down the process. M&A deals are also a collaborative and open process that requires lots of communication between teams. Dealing with cross-border issues can be difficult and time-consuming.