- September 4, 2024
- Posted by: admin
- Category: Uncategorized
Global mergers and acquisitions are a critical part of many corporate growth strategies, offering access to new industries, markets customers, products and technologies. They also improve the financial strength of companies through increased scale and reach. Companies must consider a variety of factors prior to making international acquisitions or divestitures. These include taxation, regulatory concerns, and cultural differences.
In 2024, challenges in capital markets and uncertain macroeconomic conditions weighed on deal activity. We anticipate M&A activity to pick up in 2024 when capital markets and macroeconomic conditions improve.
M&A can be triggered by other strategic goals such as consolidation or digital innovation. AI robotics, predictive robots and smart factories, for example are enhancing manufacturing efficiency in the industrial sector.
A key strategy is to buy companies in different geographical markets that have similar products or services to expand market reach and the customer base. This is referred to as market extension. PepsiCo purchased Pizza Hut in order to boost its soft drinks sales.
M&A trends also include shifting to mitigate increased geopolitical risks, focusing on sectors with more favorable market outlooks, as original site vdr-tips.blog/pricing-guide-leading-virtual-data-room-providers/ well as investing in vertical integration and strengthening supply chain resiliency. As the demand for cash and debt grows, we expect buyers to employ complex structures including stock exchanges, minority stakes sales, as well as earnouts, to fill in the gap in valuation. This could mean using private equity investment funds to make the deals viable.