As reported by KPMG, this mix of acquisitions contrasts sharply with activity during the second half of 2008, when U.S. companies acquired 122 emerging and high-growth market enterprises, primarily in China and other "BRIC" (Brazil, Russia, India and China) countries, and emerging and high-growth market companies completed 35 U.S. acquisitions.
"Although U.S. companies have been hit hard by the economic downturn, their continued willingness to enter into emerging market acquisitions signals their understanding that a global footprint is critical for a 21st-century company," said Mark Barnes, principal-in-charge of KPMG LLP's U.S.-High Growth Markets practice.
"The 28 percent decline in the pace of U.S. acquisitions reported in our recent study may also signal a more discerning, strategic approach to acquisitions than in the past, when deal money was easier to come by," Barnes added. "We believe this more measured approach to acquisitions may be the new face of emerging market activity."
Daniel D. Tiemann, national leader of KPMG LLP's Transaction Services practice, said confidence is returning to the market.
"Executives have stared into the abyss, and they've survived it," said Tiemann. "Now that some companies have become comfortable with their position in the post-recession marketplace, they are exploring their strategic options in order to grow their businesses. Many are taking advantage of distressed competitors, seizing a chance to consolidate the market while potentially expanding their global reach."
