More Little Guys Going Global

Just glancing at the mergers-and-acquisitions news this week, the word "global" jumps out.

Rainmaker Systems (RMKR) for example, acquired Qinteraction of the Philippines, seeking a stronger international presence. Analysts upgraded shares of Anheuser-Busch (BUD) in anticipation of an alliance with Belgium-based InBev in the next few years, citing Anheuser-Busch's need to raise its global profile.

The fourth annual Global CEO Survey released by PricewaterhouseCoopers this month found that mergers and acquisitions continue to be a key growth strategy for nearly 70% of private-company CEOs who are planning to acquire all or part of another company in the U.S. over the next two years.

But the study also found that 23% of private companies have completed a cross-border transaction this year or are planning to in the next 12 months, citing new markets as their primary motive.

"More and more, we see private companies looking to global markets for opportunities to expand their current business, or to outsource certain processes and functions," says Rich Calzaretta, national practice leader of PricewaterhouseCoopers' Private Company Services.

As companies face a weakening dollar and look for new ways to achieve growth while facing pricing challenges and aggressive competitors in the U.S., cross-border M&A is the way to go, says Fentress Seagroves, transactions services principal at PricewaterhouseCoopers Private Company Services, who has served as lead adviser on numerous private and corporate divestitures and acquisitions across a range of industries.