Of the 1,100 private company executives polled, 43% intend to use M&A as an accelerated route to reshape their portfolios in the next 12 months – with 45% focusing on in-country acquisitions and 55% looking toward cross-border acquisitions.
Top investment destinations
Private company leaders say that despite a continued uncertainty stemming from the UK’s intention to leave the European Union (EU), it remains one of the top destinations for investments. According to them, the top five destinations are:
It is interesting to see China among the top five, even as concerns about market access and reciprocity with the US and EU continue. And despite fears over protectionism, the US is the top destination of choice for many private company leaders.
Looking at industries, private company executives in the power and utilities (P&U) sector indicate that transactions are an important part of their growth strategy, with 76% expecting to pursue M&A in the next 12 months.
Their desire to transact comes as the sector transitions from a traditional landscape to a system that will be defined by a new, changed market and technological conditions. Deal-making in 2019 will be shaped by P&U companies’ decisions around the role they intend to play in this new ecosystem.