Global mergers and acquisitions are an an important part of many strategies for growth in corporations. They give access to new markets, industries, customers, products, and technologies. They also increase the strength of your financials through a greater scale and reach. Companies must consider a variety of factors prior to making international acquisitions or divestitures. These include regulatory, taxation and cultural differences.

In 2024, the complexities of capital markets and uncertain macroeconomic situations weighed heavily on deal activity. We expect M&A activity to increase in 2024, as capital markets and macroeconomic conditions improve.

M&A can also be driven by strategic objectives including digital innovation and consolidation. For example, rapid developments in AI as well as predictive robotics and smart factories are driving check my source manufacturing efficiencies in the industrial sector.

To expand the market and increase customer base, it is essential to acquire companies with similar products or service in different geographic markets. This is referred to as market extension. PepsiCo bought Pizza Hut in order to increase sales of its soft drink.

M&A trends include a shift to reduce increased geopolitical risk by focusing on markets that have better outlooks, investing vertically, and improving the resilience of supply chains. Finally, as cash and debt availability shrinks, we expect sellers and buyers to embrace complex structures to bridge the gap in valuations, like stock swaps, minority stake sales and earnouts. This could mean using private equity funds to make the deal financially viable.