In a dance recital the most captivating performances are when two dancers work as one, their individual spins and twirls woven into a seamless whole. The same is true for companies that merge or acquire with a view to expansion beyond the boundaries. It could be in the form an increase in financial power via an alliance or the access to a new market opportunities through a modest Dutch acquisition. Whatever the reason, if executed properly, global mergers and acquisitions can transform businesses and cause an environment that can lead to global success.
CEOs from all industries agree that organic growth is not enough. In a world where the speed of change is increasing, M&A can be an effective way to scale quickly and connect with new customers.
The global M&A industry has hit the lowest level in 2023. However it is expected to recover in 2024. With global inflation at a high level and central banks maintaining stricter borrowing policies, interest rates are higher than they have been in years, which could raise the cost of financing M&A transactions.
M&A deals can also be impacted by regulatory hurdles, which can add an extra layer of complexity and impede the process. In addition, M&A is a very human affair that requires collaboration and communication between teams. Getting the deal over the finish line can be time-consuming and complex, especially when dealing with international issues.