Article
Bridging borders: Key trends and strategies in UK-US cross-border M&A
Feb 25, 2025 · Authored by William A. Chapman, Michael Milani
In a recent interview with MHA (the U.K. member of Baker Tilly International) Bill Chapman, principal with Baker Tilly and a managing director of Baker Tilly Capital, LLC, shared his insights on the current trends and strategies in U.K.-U.S. cross-border mergers and acquisitions (M&A). This interview provides valuable perspectives on the evolving landscape of international business transactions.
Key topics discussed
During the interview, several important topics were covered, shedding light on the complexities and opportunities in the cross-border M&A space. Here are some of the key topics discussed:
1. Market drivers and trends:
Bill Chapman highlighted the main drivers of M&A activity, including the pursuit of new markets, acquisition of cutting-edge technologies and diversification of geographic risk. He emphasized the importance of understanding the strategic goals of acquirers and how these goals shape their M&A strategies.
2. Challenges and risks
The interview also explored the challenges and risks associated with cross-border M&A. Bill discussed the impact of political stability, cultural and talent integration and the complexities of navigating regulatory and tax environments. These factors are critical considerations for businesses looking to engage in cross-border transactions.
3. Opportunities in Europe and North America
Bill provided insights into how businesses can tap into the Europe and North America markets to achieve their strategic objectives. He highlighted the distinct advantages these regions offer, such as access to new markets and advanced technologies.4.
4. Future outlook
Looking ahead, Bill Chapman expressed cautious optimism about the outlook for global M&A activity over the next 12 months. He noted that while there are challenges, there are also significant opportunities for businesses to engage in strategic deal-making.
With the market up and people trying to raise new funds, LPs [limited partnerships] have to rebalance portfolios so pressure on PE [private equity] funds to drive activity and liquidity events which will press more activity in the first couple half of 2025.Bill Chapman, Principal
The interview with Bill Chapman follows the larger 2025 MHA Global Transaction Report, providing additional insights into the trends and strategies in U.K.-U.S. cross-border M&A. This report, published by MHA, the UK member of Baker Tilly International, draws on insights from corporate financiers across the globe, including Australia, Belgium, Canada, France, Germany, India, Morocco, Singapore, Spain and the United States. These professionals, along with advisors from MHA, shared their expectations for the market, including the main buy-side drivers of M&A activity, key sectors, and factors influencing valuations.
The report addresses the opportunities, challenges, and risks associated with cross-border M&A, providing valuable insights for businesses looking to navigate the complex landscape of international transactions. According to many clients, political stability tops the list of concerns when considering cross-border M&A, followed by cultural and talent integration, securing supply chains, and navigating complex regulatory and tax environments.
The report also provides insights into how businesses can leverage the European and North American markets to achieve their strategic goals. Whether it's gaining access to new markets, acquiring cutting-edge technologies, or diversifying geographic risk, these regions offer significant opportunities. The outlook for global M&A activity over the next 12 months is one of cautious optimism, with expectations of a moderate increase in deal-making activity, building on a more active market in 2024. Businesses can expect a dynamic and evolving landscape in 2025.
The level of activity in the U.S. is increasing with sell-side due diligence engagements as well as sell-side investment banking engagements.Mike Milani, Principal