Global Mergers and Acquisitions Trends in 2024

Global mergers and purchases are an essential to numerous corporate strategies for growth. They allow access to new markets and industries, customers, products, and technologies. They also increase the power of financial transactions through increased scope and impact. Companies must consider a variety of factors before making international acquisitions or divestitures. These include taxation, regulatory issues, and cultural differences.

In 2024, the uncertainties of financial markets and uncertain macroeconomic conditions weighed heavily on deal activity. We expect M&A activity to increase in 2024 when capital markets and macroeconomic conditions improve.

M&A can be driven by strategic objectives including consolidation and digital innovation. For instance, rapid advances in AI, predictive robotics and smart factories are boosting manufacturing efficiency in the industrial sector.

To expand the market and increase the client base, it is important to purchase companies offering similar products or services in different markets. This is called market extension. PepsiCo bought Pizza Hut in order to increase its sales of soft drinks.

M&A trends include shifting to lessen increased geopolitical risks and focusing on areas with better market outlooks, and investing in vertical integration, and enhancing the resilience of supply chains. As cash and debt become scarcer buyers are expected to make use of complex structures, such as stock exchanges minority stakes beste diensten tegen de beste prijzen sales, as well as earnouts, to fill in the gaps in valuation. This may include using private equity investment funds to make the deals feasible.