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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