With strategic priorities spread almost evenly across expanding their business into adjacent sectors, developing new products and services, and expanding their existing business within their domestic market, Eurozone executives expect deal pipelines to increase in the months ahead. Additionally, as timelines for identifying and buying assets have become compressed by rising competition for the most sought-after assets, active pipeline management is now a must-have for executives.
Geographically, as their strategic priorities suggest, Eurozone executives are looking close to home for the right M&A opportunity. Four of the top five destinations are in Europe, with the UK their No. 1 choice, possibly prompted by the imminent departure of the UK from the European Union. Ranking fourth, the US is the one outlying destination Eurozone executives have in their sights.
Eurozone executives are also bullish on deal completions, with 85% expecting to close more deals in the next 12 months, up from 70% a year ago. However, they remain conscious that one of their biggest risks remains the integration of operations and people — a particularly delicate part of the transaction they need to get right given the need to find and retain scarce talent.
The future looks bright
While Eurozone executives are aware of the economic risks, they are choosing to pay more attention to performance within their markets, which is markedly more optimistic. They are also choosing not to rely on economic growth for their own growth. Instead, they are looking to chart their own destinies, proactively strengthening their current operations while preparing to seize the upside of disruption so that they can thrive well into the future.