The total value of global cross-border mergers and acquisitions involving mid-sized companies rose to €180 billion last year – a sharp increase after a post-Covid slump.

The average deal value in the sector was €50.6 million in 2024, which is higher than each of the past six years except 2021 when there was a short bounce after the pandemic.

Business owners involved in cross-border mergers and acquisitions (M&A) frequently overlook the complex issue of cultural differences which can play a part in making or breaking international deals.

Left unaddressed, they can result in deals stalling – or potentially worse – proceeding but failing to maximise returns for the seller or deliver future value for the buyer.

The use of Artificial Intelligence in cross-border mergers and acquisitions is accelerating as dealmakers explore new ways to apply it, from screening investment opportunities to risk modelling and accelerating deal timelines.

However, rising use of AI must be accompanied by expert human judgement and appropriate regulatory frameworks in order to safeguard against potentially damaging data errors or breaches in data security.

Global deal activity is heating up as economic and interest rates pressures ease, allowing investors to feel more confident about deploying the billions of dollars of capital they have accumulated as “dry powder”.

The sectors attracting interest most consistently have been IT and healthcare, according to the authoritative Moore Compass report which monitors cross-border M&A activity in the mid-market.

Here, partners in the Moore Global Corporate Finance (GCF) analyse the sectors attracting most attention from investors:

Medium-sized companies seeking to grow have traditionally looked to near neighbours. Buying a local rival might seem natural and straightforward but when a business is well established in its home country, the logical next step is to look beyond its own borders.

 

Almost 20,000 cross-border mergers and acquisitions have been sealed among mid-sized companies in the past five years, as ambitious firms look beyond their own borders for growth opportunities.

Mergers and acquisitions (M&A) are a powerful way for growing companies to propel themselves forward and also for sellers to secure the financial future of their families and companies.

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 the latest edition of Moore’s M&A Compass report.

A surge in European cross-border mergers and acquisitions activity among mid-sized companies is expected as economic conditions improve, according to a new analysis by Moore Global Corporate Finance (GCF).

Whether you sell or buy a company, at some point you will have to bring ESG into the equation. Environmental, Social and Governance issues increasingly affect deals, so investors and financial institutions have to pay more and more attention to them. Christoph Schlotthauer, Managing Partner COFFRA and a member of Moore Global Corporate Finance, explains why and how ESG is no longer a soft topic, but defines the quality or the valuation of a deal. It may even turn out to be a dealbreaker.
 

As a rule of thumb, ignoring due diligence in a cross-border transaction equals heading for disaster. “Never ever does a due diligence result in a blank sheet of paper, without comments, corrections or concerns”, says Pieter Poortvliet, director at Moore Corporate Finance Netherlands (in The Netherlands also known as Crossminds). “Even though due diligence rarely leads to a deal being called off, there is often a correction to the sale price. In almost all cases, due diligence ensures the expansion of the warranties and indemnities in the sales agreement – in order to mitigate the buyer’s risks.” Since acquisitions are by definition high risk investment decisions, due diligence is crucial.
 

Thanks to his large experience with and deep understanding of how multibillion dollar businesses cope with transactions, Asaf Ravkaie now has a privileged position as Managing Partner of Moore Israel to accompany midsize companies looking for a successful cross border M&A. “Unlike big firms that – often constantly – skim the market looking for acquisitions, small and midsize enterprises don’t know exactly what to expect from both the process and the result. Yet it is crucial they prepare the process of selling meticulously.”