Increase in M&A deals to drive local pipeline
This summary of the EY 16th Capital Confidence Barometer (CCB16) focuses on results from Europe where we find that companies are spurning geopolitical concerns in favor of a resurgence in local economic confidence. A total of 65% of respondents see the local economy as improving, 83% plan to complete the same number or more acquisitions in the next 12 months and 72% report three or more deals in the pipeline.
Capital market conditions remain accommodating to dealmaking, with 86% of respondents believing that credit availability at the local level will improve or remain stable in 2017. Significant downside risks and uncertainties remain, however.
The potential slowdown in global trade and restrictions on the freedom of movement of labor are named as key concerns for European companies, with 71% citing a broad range of geopolitical or emerging policy concerns as the greatest risk to their business.
The European results from CCB16 point to a Europe finally emerging from a decade of stagnation. With 84% citing a broad range of growth motivators as the main strategic drivers for pursuing acquisitions, a renewed European optimism is palpable.
Top six sectors that intend to pursue acquisitions actively in the next 12 months
Top five investment destinations