Dealmakers Shrug Off Political Concerns With M&A to Boost Growth

  • More than half of firms surveyed to pursue deals within a year
  • The U.K. rebounds to third most attractive deal destination

An increasing number of global executives are shrugging off geopolitical uncertainty and focusing on mergers and acquisitions as they continue to look for growth, according to a survey by consultancy firm EY.

More than half of the companies in the survey expect to pursue deals in the next 12 months, a slight increase from a year earlier, EY said in its Global Capital Confidence Barometer, which surveys more than 2,300 executives across 43 countries. Almost all of the dealmakers expect the M&A market to improve or remain stable within the next year.

The U.K. has rebounded to the third most attractive market for deals, the survey found. It had fallen out of the top five for the first time in the Barometer’s seven-year history last October as fears about the country’s plans to exit the European Union added complexity to international deals.

“The exponential pace of disruption and transformation is compelling executives to engage in M&A,” said Steve Krouskos, EY’s global vice chair of transaction advisory services. “Companies need to innovate to follow rapidly changing customer preferences and buying assets can be the fastest way to radically reshape their business for future growth.”