Global mergers and acquisitions are an crucial to numerous corporate strategies for growth. They allow access to new markets as well as industries, customers products, and technologies. They also boost financial strength through increased scope and impact. Businesses must consider a wide range of factors before making international acquisitions or divestitures. These include regulatory, taxation and cultural differences.

In 2024, the challenges of capital markets and uncertain macroeconomic conditions have weighed heavily on deal activity. However we anticipate M&A to pick up in the second part of the year when these headwinds recede and the results of different elections are well-known.

M&A can be driven by strategic goals including digital innovation and consolidation. AI robotics, predictive robots and smart factories, for example are enhancing manufacturing efficiency in the industrial sector.

One of the most effective strategies is to buy companies in different geographic markets with similar products or services to increase market reach and customer base. This is known as market extension. PepsiCo bought Pizza Hut in order to increase sales of its soft drink.

M&A data room software trends include a shift in the direction of reducing increased risk from geopolitical events by focusing on markets that have better outlooks, focusing on investing in vertical integration, and strengthening resilience of the supply chain. In addition, as the availability of debt and cash decreases we expect sellers and buyers to adopt complex structures to bridge the gap in valuations, such as stock swaps, minority stake sales and earnouts. This could mean using private equity funds to make the deal feasible.