90% of dealmakers expect cross-border M&A activity to increase over the next 12–24 months

75% cite foreign direct investment screening as the biggest threat to deal completion

88% report longer signing-to-close timelines than three years ago

WILMINGTON, Del.--(BUSINESS WIRE)--

Cross-border M&A is set for a strong resurgence, with nine in 10 senior dealmakers expecting activity to increase over the next 12 to 24 months, according to new research from CSC, the leading provider of business administration and compliance solutions. However, despite this renewed momentum, execution risk is rising, with regulatory scrutiny and operational challenges making it harder to get deals over the line.

CSC¹ surveyed 200 director level and above global dealmakers across private equity, corporate, legal, and advisory roles who have worked on cross-border transactions in the past two years. The report, The New Reality of Cross-Border M&A: More Deals, More Friction, explores how firms are navigating an increasingly complex global deal environment.

The findings highlight a growing disconnect between ambition and execution. Cross-border transactions are expected to form a significant portion of deal pipelines, with 47% of respondents expecting them to account for between 26% and 50% of activity. A further 39% expect cross-border transactions to make up to three quarters of pipelines. This renewed momentum is driven by firms seeking to expand market share, reconfigure supply chains, and acquire new capabilities in an increasingly fragmented global economy.

However, more than seven in 10 say they have already restructured or withdrawn deals due to regulatory or geopolitical concerns. Specifically, 56% say they have materially restructured a cross-border deal, while 15% say they have withdrawn entirely, showing that firms are already changing behavior in response to a tougher operating environment.

“There’s no question deal appetite is back but getting transactions over the line is harder than it’s been in years,” said Marshall Saffer, managing director of Fund and Capital Market Services, CSC. “We’ve moved beyond cautious optimism. The vision is there, but macro and geopolitical concerns are forcing firms to be much more selective. That means firms need to address regulatory, operational, and structural issues much earlier if they want to get deals over the line.”

That pressure is being felt most clearly in regulation, with 75% of respondents citing foreign direct investment (FDI) screening as the primary barrier to getting deals over the line. Financing conditions and valuation challenges also remain significant, with 50% pointing to cost or availability of capital and 48% citing valuation gaps.

Operational readiness is also emerging as a critical risk to deal certainty. Nearly three quarters (74%) say deals have been prevented from closing due to delays or failures in setting up entities or special purpose vehicles. The vast majority also report delays linked to entity management, KYC, and documentation requirements across jurisdictions.

These challenges are being compounded by longer deal timelines, with 88% reporting that the time from signing to closing has increased over the past three years, adding further pressure to already complex, multijurisdictional transactions.

“FDI and antitrust are now a core part of almost every cross-border deal, not just certain sectors,” said Rupert Gerald, Market Leader for UK, Ireland and the Channel Islands at CSC. “That’s extending timelines and raising execution risk for larger M&A deals, as regulators expand how they assess transactions. At the same time, delays in entity set-up, KYC, and documentation can hold deals back, especially in jurisdictions with a tighter regulatory environment. We strongly recommend that these workstreams are addressed as early as possible to get deals over the line.”

As cross-border M&A becomes more complex, firms need earlier visibility over regulatory exposure, stronger structural readiness, and tighter coordination across jurisdictions. CSC supports clients throughout the deal lifecycle with entity formation, global compliance, corporate administration and transaction support, helping them reduce execution risk, remove administrative friction, and improve certainty of close.

Download a copy of CSC’s The New Reality of Cross-Border M&A: More Deals, More Friction report.

¹ CSC, in partnership with Pure Profile, surveyed 200 director level and above individuals involved in buy-side, sell-side, or lead advisory roles. Survey respondents included professionals from private equity firms, strategic buyers, in-house legal teams, and large advisory firms across North America, Europe including the U.K., Asia Pacific, and Latin America.

About CSC

CSC is the leading provider of business administration and compliance solutions, offering industry-leading expertise and unmatched global reach to alternative fund managers and capital markets participants. Leveraging deep institutional experience and a tailored approach, CSC delivers a comprehensive suite of fund administration, trust, agency, and compliance services to support a wide range of private and public market transactions, complex fund strategies, and scalable operations.

As the trusted partner of choice for more than 75% of the PEI 300 and 90% of the Fortune 500®, CSC helps clients navigate operational and transactional complexities across more than 140 jurisdictions and various asset classes. With extensive worldwide capabilities, our expert teams provide solutions tailored to each client’s needs. Privately held and professionally managed since 1899, we combine global reach, local expertise, and innovative solutions to help our clients succeed.

We are the business behind business®. Learn more at cscglobal.com.

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Source: CSC