The Role Of Private Equity In Mergers And Acquisitions And Cross-Border Mergers And Acquisitions
- IJLLR Journal
- Dec 31, 2024
- 1 min read
Mr. Danish Husain & Ms. Sonali Singh, Presidency University, Bangalore
ABSTRACT
The contribution of private equity (PE) to M&As is significant, especially concerning cross-border M&As, as PE firms bring not only the necessary financing but also the appropriate guidance to achieve optimal results concerning M&A transactions. Another way through which PE firms generate value is through clearly recognizing and measuring important drivers of productivity of the struggling companies before they exit, which may include everything from operations to growth strategies. Having strong financial and operational experience, they have more proactive working styles that enable fast and value-added deal structuring the deals related to companies. Moreover, PE investments in emerging markets created an impressive value, made a financing gap, and contributed to the world process of economic globalization. Nonetheless, PE-backed transactions present worth hurdles such as legal restrictions and market risks, hence the need for sound risk management as well as a compliance framework. Nevertheless, PE still supports innovation and efficiency in the M&A market all over the world.
This article explores how PE contributes to M&A and how cross-border M&A helps in various aspects mainly including the tactics of repositioning for competitive advantage, operational enhancement, and economic development.
Keywords: Private Equity, M&A, Private Equity Firms, Cross-Border M&A, and M&A transactions
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