Saturday 16 February 2019

The world deal-making


The mergers and acquisitions are highly active at the moment, the dealmaking has hit an 11-year record. The reason for the currently active merger and acquisition dealmaking is caused by companies facing increasing competitions due to the trade tension arising and the uncertainty surrounding Brexit and the economic uncertainty in the global market. Moreover, when the economy is not performing well, more companies are likely to file for bankruptcy, the businesses surrounding bankruptcy, including restructuring, are going to make more profits. From this aspect, the economy's bad performance may not be bad for all businesses.
The dealmkaing businesses do not only perform well when the economy is not performing well, when the economy is in its good shape, these businesses can still make enormous profits. When companies are performing well in the market, they are very likely to expand their businesses, leading to more mergers and acquisitions. However, such dealmaking has its own issue. For example, the most obvious issue is that the dealmaking between China and the US becomes more and more difficult. The barriers between countries become the major issue when it comes to international mergers and acquisitions; however, the international mergers and acquisitions are the most desirable in the business world. A investment firm who can deal well with international mergers and acquisitions will be very profitable; however, when it comes to international mergers and acquisitions, skills and techniques are not the first demanded, social networks (including influence over politics) become the most demanded element in the market.

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