“For the fifth time in a row, our survey finds Canadian respondents expect to pursue acquisitions at a rate above the past average,” says Jenkinson. “Canadian, U.S. and global respondents are bullish on the Canadian and global economy, and that is fueling an appetite for M&A.”
Other key findings from EY’s survey include:
- 54% of Canadian respondents believe the Canadian economy is improving
- 53% of Canadian respondents expect the global economy to improve this year, compared with 64% of global respondents
- 62% of Canadian respondents are actively pursuing M&A deals, compared with 56% of global respondents
Innovation is a driving force for M&A
The survey notes that companies are looking to “future-proof” their businesses, and innovate when it comes to things like reducing costs and accelerating productivity.
“40% of our Canadian survey respondents say they’re looking to M&A as one way to ‘future-proof’ their business,” says Jenkinson. “By acquiring smaller businesses to address critical needs, they can grow their size and fill innovation gaps.”
Jenkinson adds: “The Canadian economy is strong which is helping to drive the M&A market overall. By harnessing innovations we have a real opportunity to continue to show the world we are open to investment and growing.”
About EY’s Global Capital Confidence Barometer
The EY Global Capital Confidence Barometer is a biannual survey of executives from large companies around the world and across industry sectors. This is the 16th semi-annual Barometer in the series, which began in November 2009; respondents for the 16th edition were surveyed March and April. The objective of the Barometer is to gauge corporate confidence in the global and domestic economic outlook, to understand boardroom priorities in the next 12 months, and to identify emerging capital practices that will distinguish those companies building competitive advantage as the global economy continues to evolve.
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About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY is proudly celebrating 150 years in Canada. For more information, please visit ey.com/ca. Follow us on Twitter @EYCanada.
EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
