Only 2 in 10 CEOs plan to ink an M&A deal in the next 12 months.
Firms’ intention to ink mergers and acquisitions (M&A) deals has dipped to its lowest level since 2014.
According to EY, only 28% of CEOs plan to enter an M&A deal in the next 12 months.
EY attributed the decline in M&A appetite amongst firms to the current geopolitical and macroeconomic uncertainty.
The declining appetite for M&A also reflects the “confusion on AI targets and the real-world drop-off in AI-focused M&A following a surge earlier this year,” said EY.
Overall M&A interest in Asia-Pacific (25%) is also far lower compared to the United States (47%) and the Europe, Middle East, and Africa region (EMEA) (29%) The lower level of deal intentions could be attributed to the uncertain geopolitical and economic environment. Further, among the many priorities, corporates are following a more measured approach to capital allocation and portfolio optimization, as CEOs are tapping on M&A opportunities to build capability in technology and AI rather than meeting growth ambitions.
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