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Dealmakers have an opportunity to use corporate development M&A to help capitalize on long-term trends in technology, regulation and demographics. Being proactive now can help your company reshape its industry, setting the table for a competitive advantage over other players who are still evaluating key dynamics of an evolving business. You can also play a key role in identifying the right strategic targets and getting buy-in for a transaction up and down the org chart. Here’s how you can craft deals that can help clear hurdle rates and create more value for shareholders.
After a year of inconsistent recovery, US mergers and acquisitions activity is poised to gain momentum in 2025 due to declining interest rates, large amounts of dry powder, the need for business reinvention and shifting priorities in regulatory agencies.
Corporate development leaders should be prepared to scenario plan around regulatory and geopolitical exposures, prioritize simplifying their portfolios and focus on a value creation strategy amidst a slowing economy.
10% The median year-over-year growth in US M&A volume during the first year of a new presidential administration (1992 to 2024).
Funding transformational deals can be daunting, especially during periods of elevated interest rates. But there are strategies that can help, such as lowering transaction costs by engaging in joint ventures instead of outright acquisitions or using divestitures to raise capital that can be reinvested in transformational M&A. Deals and transformation aren’t sequential events. Instead, they’re a series of carefully orchestrated investments that combine deals with transformation initiatives to help drive total shareholder return. Look to important factors in IT, HR and sales as opportunities to increase the scope of your transformation investments.
Transformation may not just be about surviving in an evolving business environment — but also learning to thrive in it.
Having a process to determine whether your business can benefit from strategic acquisitions, joint ventures, spinoffs and divestitures is a key to your success.
Companies that will grow and create value are solving global crises, leveraging exponential technologies, and adopting game changing business models.
Divestitures — if done right — can help companies transform faster and emerge stronger.
59% of companies spent 6% or more of deal value on integration from 2020 to 2022
Identify the key focus areas of your colleagues.