In my view, over the last 10 to 15 years, many M&A deals were done on the back of globalization. Whether it was for expanding geographies, acquiring talent or technology or increasing efficiency of the overall supply chain, there was always an element of globalization behind many transactions. As you are all aware, the world has recently seen the rise of more national protectionism. Countries are more protective of their borders in many ways, including economically. Do you think this will or already is affecting the occurrence and types of M&A transactions we will see in the coming years? How and what do you expect to come from it?
I believe nowadays Digitalisation is one of the key driving factors for M&A. I the marine industry I see that a lot of startups are working with new digital offerings and big corporates are interested to acquire these start-ups.
As we’ve seen in the course M&As come in waves and some of the common factors leading to these waves are:
– low interest rates
– raising stock prices
– booming economies
We’re currently in such wave where interest rates are historically low, stock market overpriced, and economies are growing (although some at a slower rate by now). As long as such conditions last M&A transactions should continue at a high pace.
In regards to national protectionism which is indeed increasing, I believe this should be considered more as a risk factor rather than a break to M&A and should concern more cross-border M&As. Companies will have to incorporate in their assessment the risks involved in eventually pursuing such deals.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.