Navigating Cross-Border M&A: A Guide for Key Stakeholders Evaluating Opportunities in North America

Executive Summary

This executive summary, crafted from the perspective of an experienced investment banking team, is designed to assist buyers navigating the dynamic landscape of cross-border M&A transactions. In 2022 and  2023, approximately 30% of Mazzone’s transactions were cross-border, with Mazzone advising clients from the U.S., Europe, the Middle East, and Asia, in the closing of transactions in the U.S., Mexico, and Europe. From understanding the dynamics and common pitfalls to implementing strategies for success, this guide aims to empower business leaders to make informed decisions and navigate the complexities where a buyer based in Europe, the Middle East, Asia, South America or Africa is looking to acquire a North America-based business.

Common Motivations for Cross-Border M&A in North America

In an era marked by globalization, overseas business owners are increasingly exploring opportunities to expand their portfolios by acquiring businesses in North America. The North American market, renowned for its innovation, diverse industries, and robust economy, offers an enticing landscape for strategic acquisitions. Below are a few common motivations we have observed in recently closed transactions where international leadership teams are looking to enter or expand their footprint into North America.

Near-shoring Trends in a Post-COVID world: Mentions of reshoring in earnings calls were up 128% in the first quarter of 2023, compared with first quarter of 2022. From 2019 to 2023, there was a 23% decline in U.S. companies that list China as a top 3 sourcing country.  In 2023, Mexico surpassed China as the largest exporter of goods to the United States.

Customer Supply Chain Demands: “Made in the U.S.” and proximity to North America customers are key motivations whether the Buyer sees this as an opportunity to de-risk supply chain, capture additional wallet share or potentially just maintain business with its current customer base.

Economic Diversification and Global Expansion: Overseas companies, seeking to diversify their revenue streams and expand their global footprint, were increasingly looking towards North America, which represents one of the world's largest and most dynamic markets.

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