Bain & Co. Sees Scope, Capability Deals Driving 2019 M&A Market

The video discusses the trends in mergers and acquisitions (M&A) for 2019, focusing on the rise of scope and capability deals. These deals involve companies entering new markets or acquiring new capabilities to drive growth. The challenges of achieving revenue growth for publicly traded companies are highlighted, with M&A seen as a solution. Additionally, the impact of geopolitical factors on cross-border M&A, particularly concerning China, is examined.

What are scope deals primarily focused on?

• Improving customer satisfaction

• Entering new markets and business models

• Reducing operational costs

• Enhancing employee skills

Why might companies pursue capability deals?

• To reduce their workforce

• To decrease their market share

• To increase their debt

• To acquire new capabilities for faster growth

What is a significant challenge for publicly traded companies over the last 20 years?

• Rising operational costs

• Declining revenue growth rates

• Increasing employee turnover

• Decreasing market competition

Which factor is NOT mentioned as a reason for increased M&A activity?

• Private equity

• Activist investors

• Technological advancements

• Improved organic growth

What is a major concern for agencies like Cephus regarding cross-border deals?

• Reduction in trade barriers

• Loss of critical technologies to China

• Expansion of Western companies

• Increase in global competition