Growing Dominance of China and India as Buyers

A tectonic shift is US middle market M&A is about to occur.

Within a growing international share of US middle market M&A, there is a clear ascension of China and India. At the beginning of the decade, Europe/Middle East/Africa (EMEA) buyers dominated with roughly 55% of transactions. Asia/Pacific (ASIAP) buyers though have roughly doubled their share from below 20% to hovering in the neighborhood of 40%. ASIAP seems poised to surpass EMEA in the next 5 years.

These trends are not surprising given the tremendous progress made in the past 10 years in the Chinese and Indian manufacturing and service sectors. This shift has important implications for M&A planning, strategy, execution and tactics.