M&A financing: Higher cost of funds effects how deals are structured

In mergers and acquisitions a common mistake is being ill-prepared to take advantage of opportunities

Companies on the acquisition trail should aim to grow shareholder equity and protect what they have as well.

Growth through acquisition is a tried and trusted strategy. So far this year, and despite ECB interest rate increases, merger and acquisition (M&A) activity has held up well.

“The M&A market overall is strong in certain areas, less so in others, such as those depending on consumer-oriented discretionary spend, as we are seeing the cost of living and inflation feeding through into M&A activity there,” says Jan Fitzell, partner, mergers and acquisitions, at Deloitte.