Global Mergers and Acquisitions: All the World's a Stage

The global stage is set for some major drama as we emerge from the recession. The Great Comeback is happening now, helping to part the stage curtains as major multinational players act out their plans to use M&A activity to position themselves for growth.

Drama is particularly evident in China, where inbound M&A dropped from 2008 to 2009, but that trend is expected to change, according to Dr. Kim Woodard.

I recently interviewed Dr. Woodard for a two-part series in the Global Supply Chain Podcast. He is like a treasure-trove of knowledge on global M&A.

His experience in China over the past 20 years has included multiple investment projects and M&A advisory practice work on the ground in the country. When companies are looking for the most experienced guide to lead them into the China region, Dr. Woodward is the one who gets the call. He is also Vice President at Technomic Asia, a Tompkins International company helping to expand our global supply chain consulting expertise, headquartered in Shanghai.

Dr. Woodard pointed out in our podcast discussion that he anticipates M&A activity in China to recover late this year or in 2011. Whether it will be a gradual return or a sudden spike of activity is unsure, as he correctly notes that China never fails to surprise.

However, not only is China's emerging economy taking the spotlight for multinational companies to invest in, other countries are also sharing the stage. As Dr. Woodard puts it, "It is no longer about 'India vs. China' but now about 'India and China and Brazil and maybe Russia.'"

These countries, which are known to investors as the BRIC (Brazil, Russia, India, and China), are attractive for M&A activity because the emerging economies offer great future growth potential and savings from global trade management. For multinational companies looking to invest as the Great Recession ends and the Great Recovery begins, all the world is truly a stage!

In the podcast series, Dr. Woodard and I discuss what the BRIC countries have to offer multinational organizations as they seek investment through M&A, as well as past and emerging trends in this area. We also cover the challenges that integrating all of these global supply chains and operations practices will present to company leaders as they prepare to combine their businesses with others over several different geographies.

You can listen to this two-part podcast or read the text transcripts:

Global M&A: Emerging from the Great Recession

Global M&A: Challenges of Operations Integration

Jim
Tompkins Associates


More Resources:

Integrating Supply Chains from Business Combinations - Principles and Best Practices of Mergers and Acquisitions.

Global Trade Management Technologies