When performing a dance recital, the most captivating performances are those in which two partners move together as one, their distinct turns and twirls are woven into a seamless ensemble. This is the case of companies that combine or acquire with an eye towards expanding beyond the boundaries. This may take the form of a rise in the financial power of an alliance, or access to new markets via an insignificant Dutch company acquisition. Global mergers and acquisitions when done right can transform businesses and create global success.
With the business landscape undergoing rapid changes, CEOs from all industries are of the opinion that organic growth is no longer sufficient. M&A is a fantastic way to scale quickly and reach new customers in a world that is constantly changing.
While the world’s M&A activity hit the lowest level in 2023, the industry is set to see a increase in 2024. Interest rates are now higher than they have ever been, since global inflation remains high and central banks continue to increase their borrowing policies. This can increase the cost of M&A transactions.
M&A transactions are usually impacted by regulatory hurdles. They can add a layer of complexity to the process and can slow it down. M&A deals are also a highly collaborative and collaborative process that requires a lot of communication between teams. The process of getting the deal to the final hurdle can be a lengthy and difficult process particularly when dealing with issues that cross borders.