Emerging Market M&A: Getting It Right

As just about anyone with even a passing interest in economic news is aware, most of the growth across the world’s economies is occurring in emerging markets. While the World Bank expects the U.S. to grow at between two and three percent over the next few years, and Europe at less than two percent, it is forecasting growth of just under nine percent in China, five-plus percent in Turkey and about four percent in Mexico.

Companies that want to take advantage of the growth opportunities in these markets often turn to mergers or acquisitions, given that this usually is faster than trying to build operations from the ground up when working across national borders. In fact, a recent survey of M&A professionals by mergermarket and IntraLinks found that most expect cross-border M&A deals involving companies in emerging markets to outpace activity in the developed markets over the next 12 months. Nearly three-quarters of respondents expect cross-border M&A activity to increase in emerging markets, while just 50 percent predict an increase in developed countries. (more…)