Cross Border M&A in Today’s Global Marketplace

At the ACG M&A West 2025 conference, the panel on Cross Border Mergers & Acquisitions provided valuable insights for private equity, M&A, and deal professionals. The conversation underscored the dynamic nature of cross-border M&A, the importance of strategic planning, cultural understanding, and adaptability in navigating this complex landscape. By focusing on profitability, innovation, and thorough preparation, dealmakers can successfully leverage cross-border opportunities and drive growth in the global market.

The panel featured Eric Benhamou (Benhamou Global Ventures), Jordan Grant (GQG Partners), Jeff Olson (Topsource Worldwide), and Jan Robertson (SiVal Advisors), and was moderated by Greg LeSaint (Farella Braun + Martel).

Emerging Trends in Cross-Border M&A

Despite market fluctuations, inbound acquisitions of U.S. companies have seen a dramatic increase, particularly in the software and niche manufacturing sectors. Inbound acquisitions reached a high watermark of over $50 billion in March and April 2025. This surge is driven by robust interest from European and Asian buyers.

The global distribution of AI talent is reshaping cross-border M&A. Countries like Israel, India, Western Europe, and Japan are emerging as innovation hubs, creating opportunities for cross-border combinations. The geographic spread of AI talent means that companies can leverage diverse expertise, making cross-border M&A more attractive in the age of AI.

Geopolitical Impact on Cross-Border Strategies

Geopolitical tensions between the U.S. and China are significantly impacting cross-border strategies. Heightened scrutiny on U.S.-China collaborations is evident, with regulatory hurdles affecting decision-making and planning schedules. While other geographies remain open for collaboration, the uncertainty around tariffs is causing delays.

China's alignment of commercial entities with government financing makes it difficult for U.S. companies to compete. This alignment has made China more attractive for partnerships, despite the U.S.'s antagonistic stance towards some global partners. This shift has allowed other nations to outcompete the U.S. at a higher level in recent years.

Cultural Integration in Cross-Border M&A

Accelerating the HR diligence process and involving key personnel early to understand cultural alignment is essential. Thorough post-merger integration planning, involving all departments, ensures smooth transitions. Starting with a commercial agreement to test compatibility before finalizing the acquisition can reduce the risk of cultural clashes.

Buyer Preferences and Trends

Buyers are now more cautious and selective, prioritizing profitable companies with strong market traction. International buyers are increasingly focused on profitability and market footprint, a shift from previous years when acquiring customer bases and geographic locations were sufficient. We have seen increased importance of private-private combinations, where one larger VC-backed company buys a smaller one. These transactions have increased because they enable the larger (unicorn-level) companies to accelerate growth and attain critical mass (essentially, growing into their unicorn valuation), and they also enable the smaller companies to find an exit path that combines near-term liquidity while maintaining an upside potential.

The accelerated pace of innovation, particularly in AI, makes buyers wary of acquiring outdated technology. Buyers are scrutinizing not just current technology but also the roadmap and the team's ability to adapt to rapid changes. Future-proofing acquisitions has become a significant factor in successful M&A transactions.

Strategic Advice for Founders and CEOs

Founders should ensure their companies are well-developed and profitable before exploring a sale. Assembling a strong team, including experienced advisors, law firms with international expertise, and high-quality CFOs to prepare forecasts and roadmaps is crucial. Companies need to be diligence-ready, with transferable financial and HR processes to move quickly when the market is favorable and avoid delays that could impact the transaction's value.