Mazars Study: M&A in fast growing countries: Traps and structuring opportunities

Mazars took an extended approach to the notion of fast growing economies by including the five
BRICS (Brazil, Russia, India, China and South Africa) and adding another ten promising
and growing economies which may present attractive opportunities to investors, as follows:
Algeria, Egypt, Indonesia, Malaysia, Mexico, Nigeria, Philippines, South Korea, Turkey
and Vietnam.

 

In an era of worldwide competition and integrated markets, external growth is a major strategic response of many companies to a shifting and complex competitive environment.Higher growth rates, increasing consumer demands, access to natural resources, low cost manufacturing, deregulation of certain industries, innovation skills, tax incentives offered to foreign investors, etc. For all these reasons, emerging markets are viewed by foreign investors as an appealing and attractive proposition, especially when compared to mature economies.

While contemplating transactions in fast growing economies presents attractive opportunities to many investors, the acquisition process as well as the integration process is more complex than when conducting deals in mature economies.

Our experts in Transaction Services and Tax optimization often encounter a number of risks threatening the success of the deal-making process in fast-growing markets or the success of the subsequent integration process. In this study, we shed light on transactional risks and opportunities based on our experts’ experience from conducting due diligence and tax optimization in growing markets.

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