Average value of cross-border deals among ambitious mid-sized companies is €47 million, 12% higher than equivalent domestic transactions
The growing importance of cross-border mergers and acquisitions to mid-market businesses is revealed in new research today from
Moore Global, the g
lobal accounting, audit, and advisory network.
The
Moore Global Cross-border Mid-market M&A Compass, produced in collaboration with Belgium’s highly respected Vlerick Business School, has tracked cross-border M&A among mid-sized companies for the past four years and offers a unique insight into how they fared in a period of unprecedented turmoil before, during and after the outbreak of Covid-19 and war in Europe.
The main findings of the research were:
- 4,263 deals were completed in the cross-border mid-market in 2022 worth a total of €200 billion.
- Average deal value in the cross-border M&A in the mid-market is now €46.9 million, which is 17% higher than before the emergence of the Covid pandemic in 2019.
- In the mid-market, the average value of cross-border transactions was 12% higher than similar deals where both parties were based in the same country.
- North American companies remain the main acquirers in Europe and across the world, accounting for 47% of the total volume and 49% of deal value.
- The majority of deals (40%) are focused on the IT sector but healthcare remains popular. The retail and wholesale sector, which did not feature throughout Covid, is active again.
In a separate analysis of current trends in the market, released alongside the M&A Compass report, leaders of Moore Global Corporate Finance predicted a surge in European cross-border mergers and acquisitions activity among mid-sized companies as economic conditions improve.
Philippe Craninx, chairman of Moore Global Corporate Finance, said:
“Over the past three years the M&A Compass report has shown how resilient cross-border activity has been among ambitious mid-sized companies.
“The firms in the Moore Global Corporate Finance network all report strong demand but deals have been held up over the past six months by economic uncertainty. As conditions begin to ease there will be a surge of activity as companies rebuild balance sheets and seize growth opportunities.”
Kerstin Fehre, Professor of strategy for Vlerick, which is one of the top-ranked business schools in Europe, commented:
“This has been a time of incredible upheaval, but we see that mid-market M&A has been remarkably resilient. These companies play a crucial role in driving M&A across the world and there are great opportunities for those that look beyond their own borders.”
Philippe Craninx summed up the prospects for cross-border mid-market M&A:
“What happens at the macroeconomic level can reach down to small companies at the micro level. That opens up opportunities for those in the mid-market to acquire good companies that have simply become victims of circumstances and need to operate in that slightly bigger environment.”
Ends
A full copy of the ‘Moore Global Cross-border Mid-market M&A Compass’ can be viewed here
Research parameters focused on completed-confirmed deals where more than 15% ownership was acquired, for €10-200m, where at least one acquiror came from a different country than the target company.
A PDF analysing current trends in cross-border, mid-market trends can be viewed here
For further information, please contact Louise Millar /
louise.millar@moore-global.com