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1、1PitchBook Data,Inc.John Gabbert Founder,CEONizar Tarhuni Senior Director,Institutional Research&EditorialDylan Cox,CFA Head of Private Markets ResearchInstitutional Research GroupAnalysisContentsKey takeaways1Introduction2Overview2Geographic diversification5Currency impact6M&A by region7Regulatory

2、headwinds10Potential reversal in trends11Outlook13Published on December 20,2022PublishingDesigned by Megan WoodardDataTJ Mei Data AnalystAlyssa WilliamsData AnalystJinny Choi Analyst,Private EAnalyzing trends in foreign deals made by North American acquirersThe State of Cross-Border M&APitchBook is

3、a Morningstar company providing the most comprehensive,most accurate and hard-to-find data for professionals doing business in the private markets.Key takeaways Cross-border M&A activity has largely followed that of global M&A,slowing in 2020 and seeing an impressive uptick in 2021.International acq

4、uisitions have been a consistent and growing portion of dealmaking for North American buyers.GPs and corporations can accelerate growth by adding geographical diversification and gaining access to new markets,technologies,and products.Investors will continue to seek out attractive opportunities in f

5、oreign markets even as regulatory risk and sentiments supporting onshoring arise.Cross-border M&A is expected to slow down in the near term as investors assess the recent challenges and opportunities,and although deal flow in different regions may shift accordingly,long-term cross-border activity is

6、 likely to remain healthy.2PitchBook Analyst Note:The State of Cross-Border M&AIntroductionCross-border M&A has been steadily increasing over the past 20 years as both GPs and corporations in search of growth view the strategy as an attractive way to gain access to new markets and customers.Cross-bo

7、rder M&A activity can be affected by a range of macroeconomic factors,such as geographic opportunities and risks,varying regulations between countries,and currency fluctuations,which means cross-border M&A is subject to changes in the global markets in more ways than domestic transactions would be.W

8、hile historical trends point to increasing cross-border deal volume,recent pandemic-and war-induced challenges have led some to predict that sentiments against globalization would increase and that cross-border activity could decline as a result.While it is still early to see definitive changes in l

9、ong-term M&A trends,cross-border flows have rebounded strongly since the setbacks caused by the COVID-19 pandemic in 2020 and have remained largely resilient through 2022s market volatility.This report analyzes cross-border M&A deals made by North American acquirers,with“cross-border”being categoriz

10、ed by the location of corporate headquarters.In looking at deals through a more regional lens,acquisitions between the US and Canada will not be examined.The report will use“international”and“foreign”interchangeably with“cross-border”to describe these transactions.OverviewSource:PitchBook|Geography:

11、Global*As of November 30,2022$1,228.5$1,219.1$1,805.5$1,927.8$1,949.3$1,901.0$2,299.8$2,149.4$1,761.7$2,747.4$2,103.610,45310,02412,43913,21712,40412,57513,73313,30412,71918,31013,45720122013201420152016201720182019202020212022*Deal value($B)Deal countGlobal M&A activity by North American acquirers3

12、PitchBook Analyst Note:The State of Cross-Border M&AGlobal M&A activity by North American acquirers has been strong for the last several years,supported by low interest rates and excess liquidity in the markets.The trend in cross-border M&A closely follows that of global M&A,demonstrating that inter

13、national acquisitions are a consistent portion of dealmaking.Because M&A activity tends to increase during periods of economic growth and decrease when market headwinds are present,cross-border transactions declined in early 2020 with the onset of COVID-19 but were quickly supported by favorable mon

14、etary policies and strong economic recovery in the second half of the year.For North American acquirers,cross-border M&A value and volume decreased by just 3.0%and 10.1%,respectively,in 2020 compared to the year before.In 2021,cross-border activity saw an impressive uptick,as investors unleashed pen

15、t-up demand after the worst of pandemic-related volatility and confidence returned to those interested in foreign acquisitions.2,420 foreign deals closed for$417.3 billion during the year,with deal value and count seeing impressive growth of 24.9%and 54.3%,respectively.The jump in cross-border activ

16、ity reflected the one seen in overall global M&A activity:2021 was a blowout year for M&A,as low interest rates,availability of capital,and strong appetite for deals set a record of 39,344 deals for$5.1 trillion.In 2022,the global M&A landscape has changed drastically.Interest rate hikes in many cou

17、ntries caused several ripples in the stock markets as expectations of lower economic growth and declines in valuations prompted investors to pause and reassess potential acquisition targets.Global markets grappled with soaring inflationwhich hit a 40-year high for many countriesand the fallout from

18、Russias sudden invasion of Ukraine.Furthermore,the rising cost of capital and reduced access to traditional syndicated bank loan channels presented additional challenges to companies seeking to close large deals.Global M&A activity slowed in 2022,with deal value and count falling for three consecuti

19、ve quarters.Interestingly,cross-border M&A has diverged from its usual tendency to be in-line with the broader global M&A trends in 2022.While M&A activity from North American Source:PitchBook|Geography:Global*As of November 30,202220122013201420152016201720182019202020212022*Deal value($B)Deal coun

20、t$176.9$216.8$279.7$394.2$266.5$348.5$444.4$344.6$334.2$417.3$449.81,5051,5851,8761,9051,7851,6701,8061,7461,5682,4201,880M&A activity outside North America by North American acquirers4PitchBook Analyst Note:The State of Cross-Border M&Abuyers has declined in both deal value and count overall,cross-

21、border activity saw a slight uptick in deal value.North American buyers closed on 1,880 deals for$449.8 billion YTD,1 which is a growth rate of 7.8%in deal value from 2021.The increase in deal value is largely attributable to the mega-sized deals closed at the beginning of the year,which had been ne

22、gotiated before the onset of current macroeconomic headwinds.For example,the largest cross-border transaction this year has been S&P Globals$43.5 billion merger with IHS Markit,which closed in February 2022 but was announced in November 2020.Likewise,Blocks(formerly Square)AUD 39 billion($28.0 billi

23、on)acquisition of Afterpay was announced in H2 2021 but was completed in January 2022.Many of the negotiations taking place during the current market backdrop are expected to take at least several months to close,so it will be a few more quarters before any changes in cross-border activity fully app

24、ear.In addition,cross-border deals usually involve numerous regulators,extending the time to close.Despite the lag between deal negotiations and closures,several mega-sized foreign acquisitions were announced and closed in 2022,which suggests investors will continue to pursue cross-border targets in

25、 the current volatile market environment.For example,Unity merged with Tel Aviv-based ironSource for$4.4 billion in November,roughly four months after the deal was announced.The merger will create an end-to-end platform for developers to build and monetize games,helping streamline stages in a conten

26、t lifecycle.Economic downturn was a factor in the decision to merge;the companies had seen their stocks fall by around 75%and 50%,respectively,as of July this year,2 and the synergies from the merger will help strengthen the combined companys financial profile.3 Cross-border deals are expected to ke

27、ep up with broader M&A activity as strategic buyers and sponsors seek attractive growth prospects from companies that are cyclically,but not secularly,under pressure.Corporates remain poised for opportunistic M&A,with companies in the S&P 500 holding around$1.7 trillion in cash and equivalents on th

28、eir balance sheets at the end of Q1 2022.4 With still-strong balance sheets,corporates can comfortably spend capital despite a higher rate environment.During recessions,corporates can react in two different ways:retrench to ride out the market downturn or buy up competition to be in a stronger posit

29、ion when the economy resumes.While we are definitely seeing layoffs and spending cuts at some companies,others are taking advantage of falling valuations to improve their competitive positions.$258.6 billion worth of cross-border corporate M&A deals closed in YTD 2022,demonstrating greater activity

30、than the average seen in the three years pre-pandemic(2017-2019).While the increase in value could be skewed by deals negotiated before 2022,the resilience in cross-border M&A demonstrates that companies with spending power continue to expand business operations and drive growth through acquisitions

31、contrary to fears corporate M&A would slow in preparation for a potential recession and move to protect their balance sheets instead.Similarly,sponsor-backed cross-1:As of November 30,2022 2:“Unity and ironSources$4.4B Merger Is Now Complete,”TechCrunch,Paul Sawers,November 7,2022.3:“Unity Announces

32、 Merger Agreement With ironSource,”Businesswire,July 13,2022.4:“Companies Are Still Boosting Capital Spending Despite Higher Rates,”The Wall Street Journal,Hannah Miao,November 17,2022.5PitchBook Analyst Note:The State of Cross-Border M&Aborder deals have held up thanks to the near-record$787.5 bill

33、ion of dry powder held by US PE firms.This source of liquidity will be a key factor for sponsors to continue to pursue M&A despite rising financing costs.Source:PitchBook|Geography:Global*As of November 30,2022$68.4$99.6$120.7$174.5$112.3$163.5$230.4$152.5$146.9$226.7$191.3$108.4$117.2$158.9$219.7$1

34、54.2$185.0$214.0$192.1$187.3$190.6$258.626.6%30.2%27.4%26.1%25.9%32.4%32.5%34.2%36.1%39.9%38.9%20122013201420152016201720182019202020212022*Sponsor-backedCorporate M&ASponsor-backed%Cross-border M&A deal value($B)by North American acquirer typeGeographic diversificationCross-border transactions prov

35、ide important geographical diversification beneficial to investors and corporations.Exposure to various regions or countries can reduce exposure to business and operational risks that arise in different economic and regulatory scenarios.Buyers could seek foreign acquisitions when their core markets

36、experience saturation or a slowdown,or if there are regulatory or currency benefits abroad.Most importantly,cross-border deals allow companies to enter new markets or gain access to new intellectual properties,technologies,or products to offer their existing customers.Israel,for example,has been att

37、racting significant interest from US buyers for its innovative technology companies,with US tech giants such as Google and Microsoft channeling capital to acquire several Israel startups.Investors can target smaller players abroad and build out their market leadership globally.Cross-border M&A can e

38、nhance revenue opportunities and cost synergies as well as scale efficiency as company operations are expanded to a broader market.6PitchBook Analyst Note:The State of Cross-Border M&ACurrency impactSource:FRED|Geography:Global*Note:Weighted average of the foreign exchange value of the US dollar aga

39、inst currencies of major US trading partners*As of November 30,2022020406080100120140120.0Index January 2006=10020122013201420152016201720182019202020212022*Real broad dollar index*Although M&A activity is rarely based on trading short-term changes in foreign currencies,potential buyers can take adv

40、antage of favorable currency rates when pursuing cross-border deals.The US dollar is the strongest it has been since 2000,boosting purchasing power for US investors.The dollar appreciated 13%against the euro and 22%against the Japanese yen since the start of 2022,5 and the British pound hit an all-t

41、ime low against the dollar in September this year.6 The relative strength of North American currencies makes foreign assets more appealing to buyers,encouraging them to look for deals abroad to acquire assets at a discount.Cross-border activity with Europe saw a slight uptick this year as the region

42、 remained the most attractive target region for North American buyers.Potential targets in the UK,in particular,have become less expensive and could encourage deal activity.The current strength of the dollar,which is driven by higher interest rates and deteriorating economic outlooks elsewhere,creat

43、es a short-term boost on cross-border M&A for North American acquirers inclined to pursue deals abroad.5:“How Countries Should Respond to the Strong Dollar,”IMF Blog,Gita Gopinath and Pierre-Olivier Gourinchas,October 14,2022.6:“Forbes Advisor:British Pound Hits All Time Low Against the Dollar.Whats

44、 Next?”Nasdaq,Sarah Brady,October 1,2022.7PitchBook Analyst Note:The State of Cross-Border M&ASource:PitchBook|Geography:Global*As of November 30,2022$131.0$151.7$209.1$299.9$170.9$252.5$326.8$263.5$269.8$315.5$317.41,0091,0791,2781,3491,2221,1611,2641,2431,1101,7551,37520122013201420152016201720182

45、019202020212022*Deal value($B)Deal countEurope M&A activity by North American acquirersSource:FRED,Bureau of Labor Statistics|Geography:US,EU*As of September 30,20228.2%6.6%-2%0%2%4%6%8%10%201420152016201720182019202020212022*CPICore CPIInflationM&A by regionEurope has long-been the most popular reg

46、ion for cross-border activity,accounting for an average of 13.0%of all M&A activity by North American buyers in the last 20 years.Interest in the region has increased as buyers seek more foreign exposure,and robust European marketsparticularly in sectors such as techas well as the growing potential

47、for European companies to develop into global champions,have been drawing in more North America-based corporates and sponsors.Also contributing are the many fundamentally strong but undervalued companies in the region,which raise the possibility of attaining better returns from European assets.Cross

48、-border activity in Europe was boosted by Brexit and the pandemic,both of which dampened valuations in the region and prompted buyers to swoop in and snap up companies.In 2021,UK grocery chain WM Morrison was taken private by a consortium led by US buyout firm Clayton,Dubilier&Rice for 7.0 billion 8

49、PitchBook Analyst Note:The State of Cross-Border M&A($9.6 billion)after a bidding war,marking the largest buyout in the UK since KKRs acquisition of Boots in 2007.Over the past year,European economies have been grappling with escalating inflation,surging energy prices,and supply chain disruptions fr

50、om the war in Ukraine.The hit to European corporations and their valuations,coupled with the euro and pound plummeting to record lows,present North American investors with an advantageous position to buy companies with long-term attractiveness at a discount.Although a prolonged economic downturn cou

51、ld dampen the appeal for cross-border M&A in Europe in the next few quarters,deal activity is expected to largely hold steady thanks to Europes supply of profitable high-quality companies and long-term competitiveness in growing investment areas such as technology and sustainability.Source:PitchBook

52、|Geography:Global*As of November 30,2022$12.5$23.7$25.5$41.1$36.6$50.7$66.1$30.8$24.3$47.5$35.6153 191 218 229 203 184205210 173 253 19220122013201420152016201720182019202020212022*Deal value($B)Deal countAsia M&A activity by North American acquirersAsiaA significant driver of changes in cross-borde

53、r activity in Asia will be pandemic-related restrictions in China.Concerns about the lack of market-supportive policies and strict zero-COVID lockdowns are mounting for foreign investors,which can be reflected in the record outflow of mainland shares by overseas investors this year.Carlyle,which has

54、 been one of the biggest foreign investors in China for decades,will reduce its target exposure to Greater China by nearly half in its new$8.5 billion Asia fund.8 Cross-border M&A is expected to be muted until the countrys market environment stabilizes enough for investors to survey possible deal ta

55、rgets,although lowered valuations are expected to retain interest from foreign investors.Recently,the Chinese government announced it would ease its strict restrictions following intense protests,9 which prompted optimism that Chinas business operations would return to a level of predictability and

56、help reinvigorate the countrys economy.7:“Foreigners Flee China Stocks at Record Pace as Rout Worsens,”Bloomberg,October 24,2022.8:“Carlyle Cuts China Exposure in New Asia Fund by Up to Half,”Bloomberg,Cathy Chan,July 6,2022.9:“Were Going to be Free:Chinese Cheer as COVID Curbs Are Loosened,”Reuters

57、,Martin Quin Pollard and Brenda Goh,December 7,2022.9PitchBook Analyst Note:The State of Cross-Border M&AMeanwhile,Indias share of cross-border activity could increase.Indias fast-growing market in key areas such as tech,healthcare,and financial services has been driving up deal activity in the coun

58、try.For example,Blackstone acquired a majority stake in ASK Investment Managers,one of Indias largest asset and wealth management companies this year.The deal reflects the secular tailwinds in Indias financial services industry stemming from an emerging wealthy population seeking personalized financ

59、ial advice and products.10 Growing opportunities for deals in India can be seen through the numerous buyout firms strengthening their footholds in the countryCarlyles fifth Asia buyout funds investments in India surpassed those in China for the first time,11 and Apollo opened a new office in Mumbai

60、to scale in India,a core focus of the firms Asia-Pacific strategy.12 The outlook for cross-border M&A remains robust in Japan as well.US buyouts are increasingly competing for deals with Japanese businesses undertaking overhauls to become more profitable for shareholders.PE participation has been ri

61、sing for the past several years,with Bain Capital behind several major acquisitions such as the$1.4 billion Asatsu-DK deal in 2017 and a$2.3 billion stake in Hitachi Metals.1310:“Blackstone Acquires a Majority Stake in ASK Investment Managers,Indias Leading Asset and Wealth Management Company,”Black

62、stone,February 14,2022.11:“Carlyle Cuts China Exposure in New Asia Fund by Up to Half,”Bloomberg,Cathy Chan,July 6,2022.12:“Apollo Strengthens Asia Pacific Footprint With New Office in Mumbai,”Apollo,October 12,2022.13:“Bain Goes on Japan Buying Spree With$40 Billion in Investments,”Bloomberg,Min Je

63、ong Lee et al.,November 10,2022.Source:PitchBook|Geography:Global*As of November 30,2022Source:PitchBook|Geography:Global*As of November 30,2022Deal value($B)Deal count$14.0$14.8$19.4$22.1$32.4$18.0$14.7$22.7$17.3$34.1$66.311812216711715515014114313822914720122013201420152016201720182019202020212022

64、*$1.6$1.4$3.1$3.5$1.7$2.6$5.2$4.3$4.6$6.2$3.83134503932374721253326Deal value($B)Deal count20122013201420152016201720182019202020212022*Oceania M&A activity by North American acquirersAfrica M&A activity by North American acquirers10PitchBook Analyst Note:The State of Cross-Border M&ASource:PitchBoo

65、k|Geography:Global*As of November 30,2022Source:PitchBook|Geography:Global*As of November 30,2022$4.2$1.9$1.7$8.3$1.2$1.8$2.5$0.9$6.2$3.8$3.72824302422242118173029Deal value($B)Deal count20122013201420152016201720182019202020212022*$11.9$21.5$15.7$12.3$20.9$22.1$27.4$20.0$9.7$8.9$17.5146112106124127

66、971119490101100Deal value($B)Deal count20122013201420152016201720182019202020212022*Middle East M&A activity by North American acquirersSouth America M&A activity by North American acquirersRegulatory headwindsRegulatory scrutiny and increasing antitrust policies pose considerable threats to cross-b

67、order activity.The US Federal Trade Commission(FTC)has been more aggressive in its antitrust enforcement in various industries after consolidation plays and gigantic M&A deals prompted both government agencies and the public to call for increased scrutiny on potential monopolies.The biggest challeng

68、e in recent years was the FTC suing to block the$40.0 billion Nvidia-Arm merger in late 2021,charging that it would harm competition in the semiconductor chip space.Nvidia eventually called off the acquisition because of significant challenges from the FTC,the European Commission(EC),and the UKs Com

69、petition and Markets Authority.North American buyers also face heightened regulatory scrutiny in Europe.In particular,Europes efforts to rein in Big Tech continue to loom over cross-border deals.The European Union passed a sweeping overhaul of regulations for digital companies with two key bills in

70、2022;one of them,the Digital Markets Act(DMA),lays out a list of rules for tech giants to follow to prevent their domination of digital markets,detailing corresponding fines for violations.The DMA has been a source of contention for US companies that would fall under the scope of these newly imposed

71、 restrictions and investigations.The DMA also includes obligations to inform the EC of any intended acquisitions by key companies that could be harmful to competition.Tech crackdowns in China also present significant risk to cross-border activity.Sudden regulatory changes in 2021 left foreign invest

72、ors stunned and worried about prospects of further deal opportunities in China.Education technology(edtech),which had been one of the fastest growing markets in China in recent years,was one of the areas suddenly under fire when the government banned education or tutoring companies from making a pro

73、fit,raising capital,or going public.This change caused many US PE firms invested in Chinese edtech companies to rush to the exits and disclose underperformance.11PitchBook Analyst Note:The State of Cross-Border M&AThe onslaught of regulatory scrutiny and changes in policy can derail cross-border act

74、ivity as investors tread more carefully and rethink their strategies to place bets in markets vulnerable to those disruptive risks.Many countries are applying more regulatory discretion to review acquisitions below mandatory notification thresholds.More than 50 countries,including the UK,EU member s

75、tates,and South Korea,have discretion to call for investigations under broader criteria of competition issues.14 Increased regulatory scrutiny can lead investors to put more emphasis on certainty of closure to avoid the headache of regulatory hearings and the risk of getting a deal shot down.Cross-b

76、order deal volumes can drop as mega-deals become harder to pass for anti-competitive reasons.Even if antitrust investigations are overcome,they will create delays in cross-border activity and increase costs for dealmakers.Potential reversal in trends14:“Deal Uncertainty Increases as Merger Control A

77、uthorities Gain Discretionary Powers of Review,”Skadden,Bill Batchelor et al.,January 19,2022.Source:PitchBook|Geography:Global*As of November 30,20220%20%40%60%80%100%20122013201420152016201720182019202020212022*EuropeAsiaOceaniaAfricaMiddle EastSouth AmericaRest of worldNorth American acquirer sha

78、re of global M&A deal value by regionAs investors face slowing economic growth,geopolitical conflict,and significant disruptions to supply chains,some market participants suggest that trends will shift toward more domestic M&A activity.Although globalization and its emphasis on optimized efficiency,

79、low costs,and access to new markets have been major drivers of cross-border M&A activity,recent headwinds have renewed interest in nearshoring,which brings production to countries that are closer to home,and reshoring,which brings production to companies domestic locations.The pandemic revealed majo

80、r weaknesses in the global supply chain,which has become increasingly complex,spanning multiple interconnected countries with varying taxes,regulation,and COVID-19 responses.Supply chains broke down in the face of multi-country disruptions,creating significant delays and bottlenecks,as well as costl

81、y operations.Russias invasion of Ukraine put pressure on already-strained supply chains and intensified price increases,which further fueled inflation.As a result,some investors wonder if the increasing movement to nearshore or reshore 12PitchBook Analyst Note:The State of Cross-Border M&Aoperations

82、,combined with challenges stemming from international markets,will push down foreign deals.While it is unlikely that cross-border M&A will retreat completely,it is possible investors may reduce the circle of countries or regions in which they will pursue deals.Investors could be motivated to priorit

83、ize M&A opportunities between countries that are more aligned to reduce potential friction from political or economic risks rather than taking a truly global approach.For North America,that would mean that cross-border deals with Europe would stand to see more activity given the expansive transatlan

84、tic trade and investment relationship.While cross-border deals with Europe did increase in 2022 compared to the year beforefrom 11.5%of North American M&A activity to 15.1%it is too early to see any new trends shake out that are close to the average of 13.3%seen in the three years prior to COVID-19(

85、2017-2019).Moreover,if US investors were to pursue more deals with friendly countries,intense zero-COVID policies in China coupled with ongoing trade wars should reduce cross-border deals made in the region.The Trump Administrations aggressive tariffs on Chinese goods and the continuation of many me

86、asures by the Biden Administration have added to the outstanding tension between the two countries.Uncertainty created by trade wars can hurt investor and corporate willingness to pursue acquisitions.Cross-border deals in Asia have hovered between 1%and 3%of M&A activity by North American acquirers

87、for the last 20 years and have yet to see any meaningful changes in 2022.Despite the sharp drop in domestic M&A activity seen this year due to rising inflation,aggressive interest rate hikes,and resulting public market volatility,cross-border deal activity by North American acquirers has held steady

88、 overall.Cross-border acquisitions remain one of the key strategies to accelerate growth,and investors will continue to seek out attractive opportunities in new geographies and business segmentseven as challenges pop up in various markets over time.According to a 2021 report by Baker Tilly,15 56%of

89、survey respondents shared that the pandemic increased their appetite to pursue cross-border deals to achieve transformative change and better growth prospects despite increased market volatility.95%of respondents closed at least one cross-border deal during the year.16 Although it is unlikely that c

90、ross-border activity will significantly diminish in the long term,it will be worth monitoring domestic M&A activity to see how it recovers relative to international deals and whether cross-border deal flow into differing regions,such as Europe compared to Asia,will diverge.15:“Global Dealmakers 2021

91、:Cross-Border M&A Outlook,”Bakertilly,October 24,2021.16:IbidCOPYRIGHT 2022 by PitchBook Data,Inc.All rights reserved.No part of this publication may be reproduced in any form or by any meansgraphic,electronic,or mechanical,including photocopying,recording,taping,and information storage and retrieva

92、l systemswithout the express written permission of PitchBook Data,Inc.Contents are based on information from sources believed to be reliable,but accuracy and completeness cannot be guaranteed.Nothing herein should be construed as investment advice,a past,current or future recommendation to buy or se

93、ll any security or an offer to sell,or a solicitation of an offer to buy any security.This material does not purport to contain all of the information that a prospective investor may wish to consider and is not to be relied upon as such or used in substitution for the exercise of independent judgmen

94、t.13PitchBook Analyst Note:The State of Cross-Border M&AOutlookRecent financial,regulatory,and geopolitical headwinds are changing the landscape for cross-border M&A activity.Investors face near-term challenges as market volatility dampens dealmaking but also have opportunities to pursue deals that

95、have become more attractive in todays environment.So far,cross-border transactions have held steady thanks to the flurry of acquisitions negotiated in 2021.However,the muted pace of deals negotiated during 2022s intense volatility is expected to slow cross-border activity next year.With fundamental

96、drivers for cross-border M&A remaining unchanged,however,cross-border activity is likely to remain healthy and comparable to historic levels as buyers continue to navigate the risks and opportunities presented between global markets for value creation.Stronger purchasing power for the US dollar and

97、weakening valuations abroad create opportunities for cross-border deal flow,while geopolitical tensions and the possibility of a recession dampen buyer confidence.Dealmakers will have to assess and adjust to the substantial changes seen in the global market over the past couple years,but overcorrections are not likely to slow the long-term trend of increasing cross-border M&A activity.