Cross-Border M&A Surge Expected, But Execution Risks Mount
Event summary
- 90% of senior dealmakers expect cross-border M&A activity to increase over the next 12-24 months.
- 71% of dealmakers have already restructured or withdrawn deals due to regulatory or geopolitical concerns.
- 75% cite foreign direct investment (FDI) screening as the primary barrier to closing deals.
- 88% report that the time from signing to closing has increased over the past three years.
The big picture
Cross-border M&A is poised for a resurgence as firms seek to expand market share and adapt to a fragmented global economy. However, regulatory scrutiny, operational challenges, and longer deal timelines are increasing execution risk, forcing dealmakers to be more selective and address structural issues earlier in the process.
What we're watching
- Regulatory Headwinds
- How expanding FDI and antitrust scrutiny will affect deal timelines and execution risk.
- Operational Readiness
- Whether firms can address entity management, KYC, and documentation delays to improve deal certainty.
- Market Fragmentation
- The pace at which firms reconfigure supply chains and acquire new capabilities through cross-border deals.
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