Global mergers and purchases are an important elements of the many corporate strategies to grow. They open up access to new markets, industries, customers, products, and technologies. They also improve the financial strength of companies through increased size and reach. However companies should be aware of a range of factors when making international acquisitions or divestitures, from taxation to regulatory issues to cultural differences.

In 2024, the complexities of financial markets and uncertain macroeconomic circumstances have weighed heavily on deal activity. However, we expect M&A to pick up in the second part of the year when these headwinds lessen and the results of a variety of elections are well-known.

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

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

M&A granular permissions trends include a shift towards reducing risks to geopolitics by focusing on markets with better outlooks, focusing on investing in vertically and increasing resilience of the supply chain. As the demand for cash and debt grows, we expect buyers to use complex structures, including stock exchanges, minor stakes sales, and earnouts, in order to bridge gap in valuation. This could involve using private equity funds to make the deal feasible.