Global Mergers and Acquisitions Trends in 2024

Global mergers and acquisitions are an essential part of many corporate growth strategies, offering access to new industries, markets customers, products and technologies. They also boost financial power through increased size and reach. Companies must take into consideration a range of factors before making international acquisitions or divestitures. These include taxation, regulatory issues, and cultural differences.

In 2024, issues in the capital markets as well as uncertain macroeconomic conditions affected deal activity. We anticipate M&A activity to increase in 2024 as the capital markets and macroeconomic conditions improve.

M&A can be triggered by other strategic goals, such as consolidation or digital innovation. For instance, rapid advances in AI, predictive robotics, and smart factories are boosting manufacturing efficiency in the industrial sector.

A key strategy is to acquire companies from different regions that offer similar products or services to increase market reach and customer base. This is known as market extension. An example of this is when PepsiCo bought Pizza Hut to significantly boost its soft drink sales.

M&A trends include a shift to reduce increased geopolitical risk by focusing on markets that have better outlooks, focusing on investing in vertically, and improving resilience of the supply chain. As cash and debt become scarcer, we expect buyers to employ complex structures such as stock exchanges, minority stakes sales, as well as earnouts, to bridge valuation gaps. This could include the use of private equity funds to make the deal financially viable.

my latest blog post vdr-tips.blog/how-to-manage-granular-permissions-for-individual-users-in-vdr/