UK bosses to embrace M&A to stay ahead of digital curve
UK bosses expect a wave of M&A this year, a new survey suggests, reflecting the need to stay on top of technological changes and an increasingly bullish perspective on the business environment.
Nearly all business leaders surveyed (99 per cent) said they expect to actively pursue transactions over the next year, according to EY’s latest CEO outlook.
The survey includes 100 chief executives of UK businesses. 78 per cent of those are CEOs of publicly listed companies.
More than two-thirds (62 per cent) will look at buying another business, up from 40 per cent in September, while the same proportion will look at joint ventures or strategic alliances.
The expected rise in transactions partly reflects anxiety about staying ahead of the latest technological changes.
A little under half (43 per cent) said that they were looking to embrace digital technologies to enhance internal business operations and the survey suggested that the top priority for UK bosses when looking at potential acquisitions was whether it improves product and process innovation.
“M&A activity (is) set to rebound in 2025, driven by strategic imperatives, digital innovation, and a more favourable regulatory climate,” Silvia Rindone, UK&I managing partner for strategy and transactions said.
The anticipated wave of M&A also reflects a more optimistic view of the broader business environment, with 82 per cent of business leaders are ‘very’ or ‘somewhat’ optimistic about the business landscape over the next year. That’s up from 67 per cent in September.
More than three quarters (78 per cent) expect to see revenue growth while a similar proportion (77 per cent) expect to maintain a competitive position in the next year.
Rindone said the survey reflects “a resilient and forward-thinking mindset among UK CEOs” although she said businesses were clearly seeking to balance “innovation and sustainable growth”.