Despite low expectations for short-term economic recovery, Greek executives remain optimistic about dealmaking
With low expectations for an economic recovery in the near term, our 15th Capital Confidence Barometer finds Greek executives more determined than ever to identify new avenues for growth.Greek respondents maintain a positive outlook for M&A activity in Greece, with 88% expecting stable or improving activity over the next year. At the same time, 76% expect the number of acquisition opportunities to either remain stable or improve.
That said, deal intentions are affected by local, economic and political factors, as 26% of executives expect their companies to actively pursue M&As over the next 12 months, versus 47% a year ago.
Disruption from sector convergence and changing customer behavior are posing both challenges to the core businessand opportunities
Greek executives indicate that sector convergence as well as changing customer behavior and expectations are considered the two primary disruptors that pose major challenges. Yet, they may also present opportunities as companies seek to expand in new markets or products to boost their own revenues and earnings.
The ongoing active management and restructuring of nonperforming exposures (NPEs) that the four systemic banks are undertaking will increase the number of investment opportunities and will be a major driver of consolidation in certain sectors in Greece.
Technology is helping dealmakers identify targets and assess valuations
Although advanced technologies and digitalization are challenging companies in today’s increasingly complex and fast-paced environment, they are helping dealmakers improve their decision-making.
Companies are leveraging big data and analytics in M&A to identify growth options and potential targets, as well as to identify synergies and determine appropriate valuation of targets.
Overall, Greek companies are adjusting their investment plans and behavior based on ongoing economic and political uncertainty. They are seeking growth opportunities in foreign markets and through strategic partnerships.
And they remain on the look out to identify and invest in businesses that will take advantage of opportunities arising from disruption in their sectors.