Global Mergers and Acquisitions Trends in 2024

Global mergers and acquisitions form a vital part of many corporate growth strategies, offering access to new industries, markets customers, products, and technologies. They also boost the financial power of a company through greater size and reach. However businesses must be aware of a myriad of factors when making international acquisitions or divestitures, including taxation and regulatory issues to cultural differences.

In 2024, challenges in capital markets and uncertain macroeconomic conditions have weighed on deal activity. We expect https://vdr-tips.blog/how-much-does-a-merger-and-acquisition-cost M&A activity to pick up in 2024 when capital markets and macroeconomic conditions improve.

M&A can be triggered by strategic goals including digital innovation and consolidation. AI robotics, predictive robots and smart factories, for instance are boosting efficiency in manufacturing in the industrial sector.

To expand the market and expand the customer base, it’s important to purchase companies offering similar products or services in different geographical markets. This is known as market extension. PepsiCo purchased Pizza Hut in order to increase its sales of soft drinks.

M&A trends include a shift to reduce increased risk from geopolitical events by focusing on markets that have better prospects, focusing on investing vertically, and enhancing supply chain resilience. As cash and debt become scarcer buyers are expected to use complex structures, like stock exchanges, minority stakes sales, as well as earnouts to bridge gaps in valuation. This could include using private equity funds to make the deal viable.