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In April 2012 we conducted our sixth bi-annual Capital Confidence Barometer, a regular survey of senior executives from international and national companies. The previous survey was held in October 2011.
Below is a snapshot of the survey key findings in Russia:
Reluctance to engage in M&A reflects a similar sentiment among respondents to the global survey against a backdrop of extended macroeconomic instability and the Eurozone crisis. More companies are now concentrating on organic growth and are looking inward.— at managing their portfolios.— rather than outward at potential buying opportunities.
- After the elections, Russian respondents are more optimistic about local economic conditions.
- More Russian executives are willing to expand their workforce.
- At the same time, less Russian companies intend to pursue M&A deals, with more companies focusing on organic growth. The reluctance to engage in M&A reflects a similar sentiment among respondents to the global survey. This is largely due to persisting skepticism about global financial conditions.
- Debt remains the primary source of acquisition funding, although Russian respondents' confidence in credit availability is declining.
- Russian respondents are less likely to make divestments over the next year than global respondents.
Partner, CIS Transaction Advisory Services Leader
Partner, CIS M&A Leader
The current M&A landscape: