Execs' M&A confidence improves
E&Y survey finds executive confidence in M&A increasing
E&Y survey finds executive confidence in M&A increasing
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:
Succession
planning: boomers and bust
Signs
of mid-market M&A recovery in 2010