Market Insights Financial Corporate Finance

Mergers and Acquisitions - Nepal

Nepal

The transaction value in the Mergers and Acquisitions market is projected to reach US$21.11m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -12.79% resulting in a projected total amount of US$18.41m by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$5.81m 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 Nepal has been steadily growing and evolving in recent years.

Customer preferences: Companies in Nepal are increasingly looking to mergers and acquisitions as a strategic move to expand their market presence, diversify their product offerings, and gain a competitive edge in the industry. This trend is in line with the global market where companies are seeking inorganic growth opportunities to strengthen their position in the market.

Trends in the market: One notable trend in the Nepalese M&A market is the rise of cross-border transactions, particularly with neighboring countries like India and China. Companies in Nepal are exploring opportunities to partner with foreign entities to leverage their expertise, technology, and resources. This trend reflects the growing interconnectedness of economies in the region and the desire for Nepalese companies to tap into larger markets.

Local special circumstances: Nepal's unique geographical location and political landscape play a significant role in shaping the M&A market in the country. The country's landlocked position presents challenges for businesses in terms of accessing international markets, making strategic partnerships through mergers and acquisitions an attractive option for growth. Additionally, the regulatory environment in Nepal is evolving to facilitate M&A activities, providing companies with more opportunities to engage in such transactions.

Underlying macroeconomic factors: The macroeconomic factors in Nepal, such as stable economic growth, increasing foreign direct investment, and government initiatives to promote business activities, are creating a conducive environment for mergers and acquisitions. As the economy continues to develop and diversify, companies are more inclined to explore M&A opportunities as a means to scale up their operations and enhance their competitiveness in the market.

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.