The 2025 M&A Report: Capturing the Value of Cross-Border Deals
Cross-border acquisitions can still create significant value, especially intra-regional deals, but only for disciplined acquirers who navigate regulation, geopolitics and cultural integration.
Summary
Cross-border deals have fallen from 50% of global deal value in 2007 to about 30%, yet BCG finds they still create value when pursued strategically. Intra-regional deals deliver an average two-year relative TSR of 1.2%, against 0.6% for inter-regional and -0.9% for domestic deals, balancing growth with manageable integration. Sector patterns differ, with technology and health care riskier. BCG recommends building experience (seasoned acquirers beat novices by about 7 points of TSR), deepening due diligence, choosing targets with manageable cultural distance and planning for geopolitical uncertainty.
Editor's opinion
Cross-border acquisitions can still create significant value, especially intra-regional deals, but only for acquirers disciplined in navigating regulation, geopolitics and cultural integration.
Key concepts
Intra-regional vs inter-regional deals · Relative TSR · Cultural distance · Cross-border due diligence