Global Mergers and Acquisitions Trends in 2024 check my source Global mergers and acquisitions are a crucial element of many expansion strategies, giving access to new industries, markets customers, products, and technologies. They also boost the financial power of a company through greater size and reach. However companies should be aware of a myriad of factors when making international acquisitions or divestitures, from taxation and regulatory issues to cultural differences. In 2024, the challenges of financial markets and uncertain macroeconomic conditions weighed heavily on deal activity. We expect M&A activity to pick up in 2024, as capital markets and macroeconomic conditions improve. M&A can be triggered by strategic objectives such as consolidation and digital innovation. For instance, rapid advances in AI as well as predictive robotics and smart factories are driving manufacturing efficiencies in the industrial sector. One of the most effective strategies is to buy companies in different regions that offer similar products or services, to expand the market and increase the number of customers. This is known as market extension. An example of this is when PepsiCo purchased Pizza Hut to significantly boost its sales of soft drinks. M&A trends also include shifting to mitigate increased geopolitical risks by focusing on sectors with better market outlooks, and investing in vertical integration and building the resilience of supply chains. As cash and debt become scarcer buyers are expected to utilize complex structures, such as stock exchanges minor stakes sales and earnouts, to bridge gap in valuation. This could include using private equity funds to make the deal financially viable.
