In the Media
Enrique Martin Discusses Opportunities For Cross-Border M&A Deals With The Middle Market
In the Media
Enrique Martin Discusses Opportunities For Cross-Border M&A Deals With The Middle Market
October 10, 2022
Winston & Strawn Partner Enrique Martin spoke with The Middle Market about how global instability will continue to produce opportunities for investors in cross-border M&A deals.
“Despite the uncertainty in the current global climate, cross-border transactions continue to offer compelling opportunities for strategic buyers seeking diversification and market expansion opportunities,” Enrique stated. “Global instability will continue to produce opportunities for the savvy investors where others can only see high levels of risk. Investors with higher risk tolerance will see the current market conditions as an opportunity to acquire attractive targets at discounted prices.”
The rising inflation and interest rates in the U.S. have made debt financing more costly and asset divestment increasingly difficult, as well as produced higher costs of goods and services, which will drive valuations down. This environment presents opportunities to investors with cash reserves, access to other capitals, or higher risk tolerance.
“These strategic transactions tend to be less price sensitive because they are motivated by reasons other than an opportunity to buy at the lowest possible price,” Enrique stated. “Demand for M&A is expected to remain consistently high among buyers looking for targets that represent opportunities for growth or international market expansion.”