The word “global” when used, can bring up images of two dancers twirling together in perfect harmony. They dance and spin to the same beat, creating a show that is more engaging than a solo act. In the grand ballrooms of the global business companies, they are always looking for the perfect partner. A partnership that can increase their financial power or allow them access to new markets. Global mergers and acquisitions can be a successful way to achieve this, and they can be a significant catalyst for growth beyond the borders.
Several factors have dampened M&A activity this year, with investors favoring more cautious approaches to dealmaking following the post-pandemic spike in 2022. The combination of concerns about inflation, rising interest rates, and the rising volatility of the equity markets have made potential buyers wary of borrowing money to fund granular permissions deals.
However, some business leaders believe that M&A will increase in the coming months. They point to the stabilization of commodity prices and improved economic growth prospects, which could lead companies with a large amount of cash to look at selling assets to improve balance sheets. Consolidation can be beneficial to several sectors that include energy and material.
Although there is no assurance that there will be a surge in M&A activity in 2024 however, the industry players are generally optimistic and the US contributing more than usual to global deal making. The global funding markets should be more accessible than they were in 2023. This should encourage acquirers to look for lucrative acquisition opportunities.
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