The changing strategy of emerging-market acquirers

emerging markets

There was a very interesting article published recently by McKinsey, the global management consulting firm, about the changing M&A profile of emerging-market acquirers.   The article’s insights should be taken into account by any business owner who is developing their exit strategy and considering where to find potential buyers.

Emerging-market companies have been key acquirers in the global M&A market, accounting for about 37% of cross-border deal activity in 2013.  For many years, these buyers have used cross-border deals to acquire technology, know-how, brands, and other intellectual property and natural resources for use in their own home markets

According to the McKinsey research, the drivers for acquisitions by emerging market companies are changing, with fewer deals in pursuit of strategic resources and more acquisitions to tap into local markets.  For the period 2010 to 2013, McKinsey estimates that 28% of acquisitions by emerging-market companies were driven by the goal of accessing new markets.  The firm identifies that acquirers looking for new markets are mostly from the consumer goods, wholesale, and retail sectors.

For a business owner in the UK this may widen the population of possible overseas buyers to be evaluated when looking to sell.  With knowledge about acquirers from emerging-markets much less available in the public domain than for developed countries it is now more important than ever for a business owner to have the support of an M&A adviser with true global reach.

Burgis & Bullock Corporate Finance is a member of the TAG Alliances, which gives us a global infrastructure to originate and execute transactions anywhere in the world.  TAG is ranked as one of the top three independent professional services alliances in the world.  With over 15,000 professionals in 592 offices across 100 countries, we have the global reach to identify and engage the right buyers for our clients who are looking to sell their business.

For more information, contact Simon Chapman, Corporate Finance Partner, Email: Tel: +44 (0)1926 468705


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