Businesses are increasingly looking overseas for mergers and acquisitions (M&A) according to research from the latest Grant Thornton InternationalBusiness Report (IBR). The results from the 2012 report show that of those companies seeking to expand through acquisition in the next three years, 33% expect to do so through a cross-border transaction, a rise from 28% in 2010.

Within the BRIC economies, there appear to betwo distinct themes. Whilst all see value fromdomestic acquisitions, indicating an increasinglyvibrant and exciting local M&A market, onlyIndia (29%) and China (26%) show realenthusiasm to expand overseas.

Furthermore, the IBR reveals that the proportion of businesses seeking to grow through M&A, be it overseas or within their own market, has risen steeply over the past two years from 26% in 2010 to 34% in 2012. 37% of Indian businesses are planning on a Merger or Acquisitions over the next three years.

“Acquisitive growth is verymuch on the agenda for Indianbusiness leaders as they continue to focus on driving value”, says Munesh Khanna, Partner, Grant Thornton India
The IBR reveals some interesting regional variations. The regions most interested in making an acquisition in the next three years are North America (37%), UK & Ireland (36%) and the BRIC economies (35%). This compares to only 28% in mainland Europeand 25% in Asia Pacific and in particular companies in the troubled economies of Greece, Ireland and Spain where only 16%  indicated an interest in M&A activity in the coming three years.

Munesh Khannaadded: “Although the Eurozone is less optimistic about the growth prospects of their own economies a large proportion of businesses within Europe are actively seeking opportunities abroad and expanding into higher growth markets such as the BRIC economies. Following the financial crisis of 2008, the flow of economic power from ‘west’ to ‘east’ has undoubtedly sped up. It is therefore encouraging that enterprising corporates in mature markets appreciate that M&A remains a vital strategic tool to enable them to benefit from these trends.”