Cross-Border Buyers Returning to US M&A Market

M&A transactions involving companies with deal values of $100MM or less are considered to be the core of the M&A market. Over the past ten years, the cross-border M&A exits involving US targets and international buyers have increased approximately 50%. This trend peaked in Q3/2008 at 35% of all completed transactions.

The geographic shift in buyers is a function of global economic drivers and the decline of the US$ versus other acquisition currencies. Looking forward, we expect this M&A trend line to continue as the US economic recovery continues, 2011 target company earnings become more visible, and foreign acquirors flex their financial muscle.