Global Mergers and Acquisitions – A Catalyst For Growth Beyond Borders
The word “global” can bring up images of two dance partners dancing as one, they dancer perfectly timed to the same beat an experience that is more captivating than any solo performance. And in the grand ballroom of global business, companies are always searching for their ideal partner – a partnership that will boost their financial strength or give them access to new markets. Global mergers and purchases are the best way to achieve that, and they can serve as a powerful catalyst to expansion beyond boundaries.
Investors are becoming cautious about their transactions following the 2022 boom following the pandemic. Inflation fears, a rising rates of interest, and volatile equity markets have made potential buyers hesitant to borrow money to finance deals.
Certain industry players are of the opinion that M&A activity will rise in the coming months. They point to an improvement in economic growth prospects and stabilizing commodity prices, which could prompt companies with a large amount of cash to consider divesting assets to reinvigorate their balance accounts. They also identify a variety of industries that could benefit from consolidation, such as energy and materials.
Although there is no guarantee of an increase in M&A activity in 2024 but the industry players are generally optimistic that the US contributing a larger share than usual to global deal-making. In addition, global funding markets are expected to be more flexible in 2024 than in 2023, which should inspire acquirers to seek out attractive opportunities to acquire.
