 Awards for Excellence 2010 |
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| Best Emerging markets M&A house: Goldman Sachs | |
| Also nominated: Credit Suisse and Morgan Stanley |
The pace of growth in M&A in the emerging markets far outstrips that in the developed world. Between 2003 and 2009 the compound annual growth rate in M&A volumes in the developed world was 5.6%, according to Credit Suisse. In the emerging markets it was 25%.
In 2003, deals where the acquirer was based in Asia, Latin America, central and eastern Europe, the Middle East or Africa accounted for only 9% of global M&A volumes. The figure was 21% in 2009 and is likely to be higher this year. Mergers and acquisitions involving a government-sponsored entity, corporate or financial institution in the developing world accounted for one-third of global activity in the first quarter of the year, according to Thomson Reuters, compared with 18% for the same period the previous year.
Such rapid growth means that no bank with pretensions to be a leading global M&A adviser can afford to ignore these markets.
Building an emerging markets strategy is not easy, however.