The word “global” could bring to mind images of two dancers moving as one, each turn and spin perfectly to the same beat – a performance more captivating than any solo performance. In the grand ballrooms of global business businesses, companies are always looking for their perfect partner. An alliance that will boost their financial strength or provide them access to new markets. Global mergers and acquisitions are a powerful method of achieving this, and can be a potent catalyst for growth beyond borders.
Several factors have dampened M&A activity this year, and investors are urging prudent decisions in the aftermath of the post-pandemic spike in 2022. Inflation fears, a rising rates of interest and volatile stock markets have made potential buyers reluctant to borrow money to finance deals.
However, some industry experts believe that M&A will increase in the coming months. They point to stabilizing commodity prices and better economic growth potential, which could prompt businesses with large cash reserves to think about selling assets to improve balance sheets. Consolidation is also believed to be beneficial to a number sectors which include energy and materials.
Although there is no assurance that M&A will increase in 2024. However, industry experts are generally optimistic about the outlook for deal making, with the US continuing to play a bigger role than usual in the amount of global activity. Additionally, global funding markets are expected to be more flexible in 2024 than in 2023, which should inspire acquirers to seek out attractive acquisition opportunities.