Cross-Border M&A Rebounds, but Execution Risks Intensify
Cross-border M&A activity is poised for a resurgence, but getting deals across the finish line is becoming increasingly complex. According to new research from CSC, nine in 10 senior dealmakers expect cross-border activity to increase over the next 12 to 24 months—yet execution risk is rising sharply.
The report, The New Reality of Cross-Border M&A: More Deals, More Friction, draws on a survey of 200 global dealmakers across private equity, corporate, legal and advisory roles. It highlights a widening gap between deal ambition and execution. Nearly half (47%) of respondents expect cross-border transactions to account for 26% to 50% of their pipelines, while another 39% anticipate they could make up as much as 75%.
Still, more than 70% of dealmakers report having already restructured or withdrawn transactions due to regulatory or geopolitical concerns. Specifically, 56% said they materially restructured deals, while 15% abandoned them altogether.
“There’s no question deal appetite is back but getting transactions over the line is harder than it’s been in years,” said Marshall Saffer, Managing Director of Fund and Capital Market Services at CSC. “We’ve moved beyond cautious optimism. The vision is there, but macro and geopolitical concerns are forcing firms to be much more selective.”
Regulation is emerging as the most significant obstacle, with 75% of respondents citing foreign direct investment screening as a primary barrier. Financing and valuation pressures also persist, with 50% pointing to capital costs and 48% citing valuation gaps.
“FDI and antitrust are now a core part of almost every cross-border deal,” added Rupert Gerald, CSC’s Market Leader for the UK, Ireland and Channel Islands. “That’s extending timelines and raising execution risk as regulators expand how they assess transactions.”
Operational hurdles are compounding delays, with 74% reporting deals derailed by entity setup issues. As timelines stretch—88% say signing-to-close periods have increased—execution discipline is becoming as critical as deal sourcing.