Eyad Farsakh
Kreston Global Corporate Finance Group and Managing Partner at Kreston Awni Farsakh & Co. United Arab Emirates
Ward Rentenaar
Senior Associate at Kreston Lentink Corporate Finance
The role of Corporate Finance specialists in a volatile market
January 28, 2025
The role of corporate finance specialists can add value in today’s volatile global economy. This article in Accountancy Today, authored by Kreston Global experts Eyad Farsakh and Ward Rentenaar, highlights how these professionals can guide organisations through financial, strategic, and operational challenges in a complex landscape.
Global Trends in M&A Activity
After two years of decline, M&A activity has rebounded in many regions, driven by reduced interest rates and sector-specific growth. North America saw a 9% rise in deal value in early 2024, though political uncertainty towards the end of the year added inflationary pressure. In Europe, deal numbers increased by 12%, fuelled by private equity competitiveness and central bank interventions. However, geopolitical concerns, including developments in the UK and France, introduced volatility.
The MENA region saw strong growth in sectors like renewable energy and technology, despite declining overall deal volume. Economic diversification efforts continue to shape investment opportunities, but regional conflicts remain a challenge. In Asia, deal volumes and values dropped sharply, most notably in Japan and China. Nonetheless, Southeast Asia offers promise with recovering IPO markets, private equity activity, and government reforms supporting M&A growth.
How Corporate Finance specialists add value
Corporate advisory specialists play an essential role in helping businesses navigate complex financial, strategic, and operational challenges. Their expertise spans a wide range of critical areas, including mergers and acquisitions, strategic planning, and financial restructuring. By leveraging their deep industry knowledge and extensive experience, they offer clients a unique perspective that adds significant value to their decision-making processes. Importantly, their objectivity ensures unbiased advice, helping organisations avoid potential conflicts of interest and make clear-headed choices.
One of their key contributions is providing support in forecasting, risk assessment, financial modelling, and scenario planning. In today’s increasingly unpredictable economic and political climate, their comprehensive understanding of financial markets and macroeconomic trends is invaluable at every stage of a company’s journey.
These specialists evaluate a company’s financial performance and key value drivers while assessing market dynamics and future expectations. This insight forms the foundation for reliable financial forecasts, which can then be translated into robust financial models to guide strategic decisions, including mergers and acquisitions.
By constructing financial models that incorporate multiple scenarios, corporate advisory experts help organisations better understand how internal and external factors—such as interest rate fluctuations, shifts in raw material costs, or geopolitical developments—could impact their operations. This enables companies to identify risks, seize opportunities, and make informed choices that position them for success in volatile markets.
Armed with these insights, management can proactively design strategies to adapt to worst-case scenarios, such as delaying investments or reallocating resources to more resilient areas. Ultimately, corporate finance specialists empower organisations to capitalise on their strengths, address vulnerabilities, and act decisively in fast-changing environments. Their guidance ensures that businesses are not only prepared for the future but also equipped to thrive amidst uncertainty.
For a detailed analysis of global trends and strategies, read the full article on Accountancy Today. With expert insights, businesses can remain agile, overcome challenges, and take advantage of emerging opportunities in the global marketplace.
