Market Insights Financial Corporate Finance

Mergers and Acquisitions - Nigeria

Nigeria

The Mergers and Acquistions market market in Nigeria is expected to witness a significant increase in transaction value.
By 2024, it is projected to reach a staggering US$198.50m.
This growth is anticipated to be steady, with an annual growth rate of NaN% from 2024 to [yeartoday].
Consequently, the total projected amount is also estimated to be US$198.50m by 2024.
In terms of average transaction value, the Mergers and Acquistions market market in Nigeria is anticipated to reach US$67.18m in 2024.
This figure highlights the value of individual transactions within this market segment.
When compared globally, it is evident that the United States leads the way in terms of transaction value.
In 2024, the United States is projected to reach a remarkable US$1,091.00bn, surpassing other countries in this market segment.
Mergers and Acquisitions activity in Nigeria is on the rise, driven by the country's growing economy and favorable investment climate.

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Analyst Opinion

The Mergers and Acquisitions market in Nigeria is witnessing a surge in activity, driven by various factors shaping the country's economic landscape.

Customer preferences: In Nigeria, customers are increasingly looking for M&A deals that offer strategic advantages, such as access to new markets, technologies, or talent. They are also inclined towards transactions that enhance their competitive position in the market and drive growth opportunities.

Trends in the market: One notable trend in the Nigerian M&A market is the rise of cross-border transactions, where foreign investors are showing a growing interest in acquiring Nigerian companies. This trend is fueled by the country's large consumer market, natural resources, and strategic location within Africa, making it an attractive investment destination. Additionally, there is a noticeable increase in M&A activity within the technology and fintech sectors as companies seek to innovate and expand their digital capabilities to meet the evolving needs of consumers.

Local special circumstances: Nigeria's M&A market is influenced by unique local circumstances, such as regulatory changes and political stability. The regulatory environment plays a crucial role in shaping deal structures and timelines, impacting the overall M&A landscape. Moreover, the political climate in Nigeria can create both opportunities and challenges for M&A transactions, as government policies and stability directly affect investor confidence and deal flow.

Underlying macroeconomic factors: Several macroeconomic factors are driving the M&A market in Nigeria, including GDP growth, foreign direct investment inflows, and sector-specific trends. The country's economic growth prospects, coupled with a young and growing population, present opportunities for M&A activity across various industries. Additionally, the increasing focus on diversification away from oil dependence is driving investment in non-oil sectors, leading to a more diversified M&A landscape in Nigeria.

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.