Market Insights Financial Corporate Finance

Mergers and Acquisitions - Sri Lanka

Sri Lanka

The transaction value in the Mergers and Acquisitions market is projected to reach US$0.56bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of -12.50% resulting in a projected total amount of US$0.49bn by 2025.
The average transaction value in the Mergers and Acquisitions market amounts to US$31.51m 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 Sri Lanka is experiencing a surge in activity.

Customer preferences: Companies in Sri Lanka are increasingly looking to mergers and acquisitions as a strategic tool to expand their market presence, diversify their offerings, and gain a competitive edge. This trend is driven by a growing appetite for growth and a desire to capitalize on emerging opportunities in the market.

Trends in the market: One notable trend in the Sri Lankan M&A market is the rising interest from foreign investors. International companies are eyeing Sri Lanka as an attractive investment destination due to its strategic location, skilled workforce, and improving business environment. This influx of foreign interest is fueling a wave of cross-border M&A deals in the country.

Local special circumstances: Sri Lanka's unique geopolitical position and its focus on infrastructure development are also influencing the M&A landscape. The government's efforts to enhance connectivity and modernize key sectors such as tourism, manufacturing, and technology are creating new investment prospects, prompting local businesses to seek M&A opportunities to strengthen their market position.

Underlying macroeconomic factors: The overall economic stability and regulatory reforms in Sri Lanka are providing a conducive environment for M&A activities. Favorable government policies, ease of doing business, and a stable legal framework are instilling confidence in investors and encouraging both domestic and international deal-making. Additionally, the country's robust economic growth and increasing disposable income are driving demand for M&A transactions as companies seek to capitalize on the expanding consumer 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.