WILMINGTON, DE — CSC reported that 90% of senior dealmakers expect cross-border mergers and acquisitions activity to increase over the next 12 to 24 months, even as regulatory scrutiny and operational challenges continue to complicate deal execution.
The findings are based on a survey of 200 directors and senior executives involved in cross-border transactions across private equity, corporate, legal, and advisory sectors.
According to CSC, 75% of respondents identified foreign direct investment screening as the largest threat to deal completion, while 50% cited financing conditions and 48% pointed to valuation gaps.
The report found that more than 70% of respondents had already altered transaction plans because of geopolitical or regulatory pressures. Fifty-six percent said they had materially restructured a deal, while 15% reported withdrawing from a transaction entirely.
“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.
The survey also found that operational and administrative hurdles are delaying transactions. Seventy-four percent of respondents said deals had been prevented from closing because of delays or failures related to entity formation or special purpose vehicles.
In addition, 88% said the period between signing and closing has lengthened over the past three years.
Rupert Gerald, market leader for the United Kingdom, Ireland, and the Channel Islands at CSC, said increased scrutiny from regulators is extending deal timelines and raising execution risk.
“FDI and antitrust are now a core part of almost every cross-border deal, not just certain sectors,” Gerald said.
The survey found that 47% of respondents expect cross-border transactions to account for between 26% and 50% of their deal pipeline activity, while another 39% expect such deals to make up as much as 75% of future activity.
CSC said the report reflects growing demand for earlier regulatory planning, entity management, and transaction support as firms pursue international acquisitions in an increasingly fragmented global market.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.