Corporate Dealmaking Trends for CEOs in 2025 and Beyond
Corporate Deal Outlook for 2025
Global chief executives are expressing an optimistic view of corporate dealmaking as we move towards 2025. Many CEOs are poised to embark on mergers and acquisitions as confidence grows in the economic landscape.
Increased M&A Activity
The EY-Parthenon CEO Outlook Survey indicates that 56% of CEOs anticipate pursuing M&A opportunities, a significant jump from just 37% in previous months. This shift illustrates a strong resurgence in deal appetite among global leaders.
Major Transaction Expectations
Furthermore, 60% of the responding CEOs anticipate a rise in transactions exceeding $10 billion, marking the largest deal interest seen in nearly two years. This indicates a notable recovery following a dip in activity observed in 2023.
Factors Driving Growth
The renewed enthusiasm for corporate deals is influenced by lower borrowing costs in the U.S. and a favorable outlook for business policies, particularly with the recent election outcomes. Bankers project that global deal volumes may surpass $4 trillion as these factors come into play.
CEO Confidence
Following the recent elections, CEO confidence in growth has climbed to 73.5%, up from 70.5% previously. Such confidence stems from expectations of solid economic performance, which leads to increased eagerness to invest long-term.
Future Investment Strategies
Interestingly, around 48% of CEOs surveyed are considering divestments or carve-outs, showcasing a strategic approach to asset management amidst this growth climate. Notably, an impressive 96% of CEOs are open to pursuing transactions, IPOs, joint ventures, or strategic alliances.
Active Sectors for M&A
As for the sectors anticipated to be most active in M&A, real estate, technology, and consumer products are leading the pack. These industries are expected to see significant maneuvering as companies position themselves for sustainable growth.
Investment Hotspots in 2025
According to the survey, countries recognized for attracting investments include Canada, the United States, Mexico, the United Kingdom, and Germany. These nations are viewed as key players for businesses looking to expand and capitalize on emerging opportunities.
Frequently Asked Questions
What is the main finding of the EY survey regarding M&A activity?
The survey revealed that 56% of CEOs plan to actively pursue M&A activity in 2025, indicating a significant rise in interest compared to the prior year.
Which sectors are expected to see the most M&A activity?
Real estate, technology, and consumer products are anticipated to be among the most active sectors for mergers and acquisitions.
What influenced the increase in CEO confidence after the elections?
The increase in CEO confidence is largely attributed to better economic projections, lower borrowing costs, and favorable business policies expected in the near future.
What percentage of CEOs are considering divestments?
Approximately 48% of CEOs indicated that they are planning divestments or carve-outs as part of their strategic planning.
Which countries are viewed as top investment hotspots in 2025?
According to the survey, Canada, the U.S., Mexico, the United Kingdom, and Germany stand out as the leading countries attracting investments in 2025.
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