Cross-border M&A on the rise, new study finds

For all the recent talk about reshoring and localization, mid-market companies continue to emphasize global deals amid one of the most active M&A markets in memory. In a new Harvard Business Review Analytic Services study, sponsored by Oaklins, 55% of mid-market executives predicted a greater focus on cross-border deals in the wake of the pandemic. Asia-Pacific respondents led the way, with 65% somewhat or strongly agreeing that cross-border deals will gather steam.

65% of our mid-market executive respondents from Asia Pacific agree cross-border M&A will likely increase post-pandemic

When it comes to their own companies, the executives surveyed were similarly bullish on the potential for global M&A. More than twice as many said their company would consider cross-border deal-making (49%) as said they would consider only domestic deals (24%). European companies were the least reticent about making deals in other countries, with just 15% ruling out such a move, compared with 24% among Asia-Pacific respondents and 34% among those from North America.

2x executives globally say they would consider cross-border deals for their company, compared to those who wouldn't

Without question, the pandemic has disrupted international supply chains and created extra scrutiny around global transactions, the study finds. Yet it has also compelled companies to prepare for the future by acquiring new technologies and expertise to increase market share and stay ahead of the competition in a post-pandemic economy. And that may involve finding the best M&A opportunities, whether locally or around the world.

For a closer look at key trends driving mergers and acquisitions in today’s fast-changing environment, read the full report by Harvard Business Review Analytic Services, “A New Vision for How Organizations Can Use M&A to Adapt to a Post-Pandemic Economy”. And reach out to Oaklins to discuss how these trends could affect your own business.

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