Oil and gas capital confidence barometer
Merger and acquisitions outlook
Appetite for M&A declines amid uncertainty about the global economic outlook, oil and gas companies are still wary of acquisitions and their perceived risks.
It is not just a lack of confidence in the business environment that is holding companies back — many are also concerned about the gap between their valuation of potential acquisitions and the prices sought by sellers. For many companies, the intent around M&A has declined. Five years after the financial crisis, many executives are still waiting for a sustained recovery before taking action.
Do you expect your company to pursue acquisitions in the next 12 months?
Expectations to pursue an acquisition
In terms of the drivers of acquisition activity, increasing market share, both in existing markets and in new markets, dominated the responses, for both the broader global sample and the oil and gas companies.
What are the main drivers of your company’s planned acquisition activity? (select two)
Optimism around acquisitions in emerging markets remains relatively high, both for our broader sample and for our oil and gas respondents, but companies are exerting more caution, particularly in those areas where growth has slowed.
Which statement best describes your approach to M&A in those emerging markets that are experiencing slower growth?