Mergers and Acquisitions - Western Africa

  • Western Africa
  • The transaction value in the Mergers and Acquisitions market is projected to reach US$4.75bn in 2024.
  • It is expected to show an annual growth rate (CAGR 2024-2025) of -72.21% resulting in a projected total amount of US$1.32bn by 2025.
  • The average transaction value in the Mergers and Acquisitions market amounts to US$97.09m 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 Western Africa is experiencing a significant uptick in activity, driven by various factors influencing the region's economic landscape.

Customer preferences:
Companies in Western Africa are increasingly looking to M&A deals as a strategic tool to expand their market presence, diversify their product offerings, and gain a competitive edge in the industry. This trend is fueled by the growing demand for innovative solutions, technological advancements, and the need to streamline operations for efficiency.

Trends in the market:
Nigeria, as one of the largest economies in Western Africa, is witnessing a surge in M&A transactions across sectors such as telecommunications, financial services, and energy. This trend is driven by the country's efforts to attract foreign investment, improve infrastructure, and capitalize on its vast natural resources. Additionally, cross-border acquisitions involving Nigerian companies are on the rise, reflecting a growing interest in regional expansion and market consolidation.

Local special circumstances:
Ghana, another key market in Western Africa, is experiencing a wave of M&A activities in sectors like agriculture, mining, and technology. The government's pro-business policies, stable political environment, and strategic geographic location make it an attractive destination for investors seeking growth opportunities. Moreover, the emergence of local startups and entrepreneurial ventures is creating a dynamic ecosystem that is conducive to M&A deals aimed at fostering innovation and driving economic development.

Underlying macroeconomic factors:
The overall economic stability in Western Africa, coupled with favorable demographic trends and urbanization, is contributing to the growth of the M&A market in the region. As governments focus on diversifying their economies, strengthening regulatory frameworks, and promoting private sector participation, investors are increasingly drawn to opportunities that offer long-term value and sustainable growth prospects. Additionally, the ongoing digital transformation and the rise of fintech companies are reshaping the business landscape, prompting traditional players to explore strategic partnerships and acquisitions to stay competitive in the evolving market environment.

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.

Overview

  • Transaction Value
  • Number of Transactions
  • Average Transaction Size
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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