This year is on pace to set new highs for M&A activity, which already exceeded last year’s total of roughly $3 trillion by early September. As the world economy becomes increasingly interconnected, nestled within that growth has been an ongoing trend towards cross-border transactions, whereby a deal implicates multiple jurisdictions. Such transactions are often the result of companies looking to enter new markets.
This is a trend that we at Baker & McKenzie have foreseen for years, and one in which we have developed expertise as the leading cross-border firm. But while intuitively this growth in cross-border deals makes sense, there has yet to be a resource the brings together global, regional and sector data with deep insights into the underlying drivers. That is, until now.
Coming soon later this month, we will launch our quarterly Cross-Border M&A Index. Prepared in tandem with experts at Mergermarket, the index will reveal the intensity of cross-border M&A activity across the world. The index will be presented on a dedicated website, as well as a short, visually engaging report available in PDF and print. Alongside the index, the report will present an analysis of the key drivers behind cross-border M&A, including three focus articles covering a key region, sector and thematic issue each quarter.
Ahead of the release of this quarter’s index, we have provided a brief preview of some of the themes that will be contained within the report:
- Cross-border activity remains robust inching towards highs not seen since pre-recession levels in 2007.
- Inbound M&A into the United States is particularly accelerating as many businesses now view it as the “new emerging market”.
- Consolidation in healthcare has yielded many mega deals in the past year – and that trend is likely continue into the near future.
- While many successful businesses now speak “cross-border” fluently, many risks and challenges remain, all of which require appropriate mitigation strategies and thorough preparation.
These themes and more will be revealed next month, and the report will also be discussed at the Doing Business Globally seminar series.
Be sure to check back to this blog and our Firm website for the latest updates.