The term “global” could bring to mind images of two dance partners who are one in their movements, who turn and spin perfectly to the same rhythm – a performance more captivating than any solo performance. In the grand ballrooms of the global business companies, they are always looking for their perfect partner. A partnership that can increase financial strength or give them access to new markets. Global mergers and acquisitions are an effective method to achieve this, and they can be a significant catalyst for growth beyond borders.
Investors are becoming cautious about their deals after an increase in 2022 after the pandemic. Inflation fears, rising rates of interest and volatile stock markets have made potential acquirers less inclined to borrow money to finance deals.
Some industry professionals are of the opinion that M&A activity will rise in the next few months. They suggest stabilizing commodity prices and improved economic growth potential, which could prompt companies with huge cash reserves to consider selling assets in order to improve balance sheets. They also identify a variety of sectors that could benefit from consolidation, such as materials and energy.
While there is no guarantee of a significant increase in M&A activity in 2024 however, the industry players are generally optimistic, with the US making up a greater share than is typical to global deal-making. In addition, global funding markets are expected to be more flexible in 2024 than 2023, which will encourage buyers to search for attractive opportunities to acquire.