Cross-border M&A remains high on the agenda for companies around the world according to a survey of 350 senior executives across high-growth and developed markets.
Nearly half of those surveyed, including more than 275 M&A strategists based in high growth or emerging markets, expect their company’s appetite for cross-border M&A to increase over the next two years. Companies from developing markets are also becoming increasingly adventurous in their M&A strategies.
The report, Opportunities Across High-Growth Markets: Trends in Cross-Border M&A, is based on a survey conducted by the Economist Intelligence Unit (EIU) on behalf of Baker & McKenzie. Senior executives with responsibility for M&A across high-growth and developed markets were asked for their views on the most important factors influencing the success of cross-border M&A transactions and the potential risks that could hurt their investments as they expand into new markets.
"Outbound M&A activity is shifting and we are seeing a greater number of deals involving high-growth market countries," says Tim Gee, head of Baker & McKenzie’s global M&A practice. "It’s not just Western companies on the buy side anymore. Both developed and emerging market companies are chasing acquisition opportunities in new markets such as Indonesia, Turkey, and Vietnam, and the frontier markets that lie beyond. Findings from our survey are similar to the activity and interest we see from our clients, including the need to rethink strategy to maximise investment in unfamiliar markets."
