Market Insights Financial Corporate Finance

Mergers and Acquisitions - Cameroon

Cameroon

The transaction value in the Mergers and Acquisitions market is projected to reach US$0.59bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -15.25% resulting in a projected total amount of US$0.50bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$81.11m in 2024.
From a global comparison perspective, it is shown that the highest transaction value is reached in the United States (US$1,359.00bn in 2024).

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Analyst Opinion

The Mergers and Acquisitions market in Cameroon is experiencing a gradual but steady increase in activity.

Customer preferences: In Cameroon, customers in the M&A market are showing a growing interest in cross-border transactions, seeking opportunities beyond the local market. This trend aligns with the global market as businesses aim to expand their reach and diversify their portfolios.

Trends in the market: One notable trend in the Cameroonian M&A market is the rise in transactions within the technology sector. As the country embraces digital transformation, tech companies are becoming attractive targets for acquisition, driving M&A activity in this industry. Additionally, there is a noticeable increase in mergers and acquisitions in the agriculture sector, reflecting the importance of this industry in Cameroon's economy.

Local special circumstances: Cameroon's unique position as a bilingual country (English and French) presents a special circumstance in the M&A market. This linguistic diversity can influence deal negotiations and communication strategies between local businesses and foreign investors. Understanding and navigating these language dynamics is crucial for successful mergers and acquisitions in Cameroon.

Underlying macroeconomic factors: The stability of Cameroon's political environment plays a significant role in shaping the M&A market. As the country works towards improving its business climate and regulatory framework, investors are gaining more confidence in engaging in M&A activities. Additionally, the steady economic growth and increasing foreign direct investment in key sectors contribute to the overall positive outlook for mergers and acquisitions in Cameroon.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.