Market Insights Financial Corporate Finance

Mergers and Acquisitions - Iraq

Iraq

The transaction value in the Mergers and Acquisitions market is projected to reach US$179.80m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -4.12% resulting in a projected total amount of US$172.40m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$70.65m 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 Iraq is experiencing a notable increase in activity.

Customer preferences: In Iraq, customers are showing a growing interest in M&A deals, driven by a desire to diversify portfolios, expand market reach, and gain access to new technologies and expertise. This trend aligns with the global market where companies are increasingly looking for strategic partnerships to enhance competitiveness and drive growth.

Trends in the market: One prominent trend in the Iraqi M&A market is the rise of cross-border transactions, indicating a willingness among local companies to engage with international partners. This trend is fueled by the desire to leverage global resources, access new markets, and capitalize on synergies that can drive innovation and efficiency in operations.

Local special circumstances: Iraq's market is unique due to its geopolitical environment, which presents both challenges and opportunities for M&A activity. The country's efforts to diversify its economy away from oil dependence have created openings for investments in sectors such as infrastructure, technology, and healthcare. Additionally, the government's push for privatization and economic reforms is attracting interest from foreign investors looking to capitalize on emerging opportunities.

Underlying macroeconomic factors: The M&A market in Iraq is also influenced by macroeconomic factors such as fluctuating oil prices, political stability, and regulatory reforms. The country's rich oil reserves make it an attractive destination for energy-related investments, while ongoing efforts to improve the business environment and legal framework are enhancing investor confidence. However, challenges related to security risks, bureaucratic hurdles, and transparency issues continue to impact the M&A landscape in Iraq.

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.