Execs’ M&A confidence improves

M&A confidence is returning among senior executives.

More than half (57%) of 800 business execs questioned by
Ernst & Young say they
were likely or highly likely to acquire other companies in the next 12 months.
Just 33% said the same six months ago.

Three quarters of respondents are focused on growth of their business,
compared to 56% six months ago.

Pip McCrostie, global vice-chair, transaction advisory services, at Ernst
& Young, says: “With greater liquidity, we are seeing companies more willing
to make acquisitions they have previously deferred.

In terms of industry sectors, 61% of respondents expect the downturn to end
in their industries within 12 months, compared to just 49% six months ago.

But challenges remain, with 58% expecting to refinance loans or other debts
within the next four years. More than a third (35%) still need to restructure
their core business.

“Driving operational fitness and working capital management remains
absolutely critical,” added McCrostie.

Further reading:

planning: boomers and bust

of mid-market M&A recovery in 2010

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