EY Report Talks Dealmaking in the Year Ahead

https://dailyalts.com/wp-content/uploads/2019/10/EY-Report.jpg

Geopolitical Tensions are Cutting into Dealmaking

The latest EY report from its Global Capital Confidence Barometer measures expectations for M&A activity for the year ahead and reveals interesting technology trends.

EY is a leader in assurance, tax, transaction, and advisory services. The company finds that business leaders have altered their portfolios due to a challenging geopolitical environment. However, the firm notes that 52% of global corporate leaders plan to pursue acquisitions in the next year.

Breaking Down the New EY Report

According to the EY report, the search for technology and talent is driving dealmaking. Roughly two-thirds of respondents plan to allocate more than 25% of their investment capital to technologies that can drive top-line growth. More than half of executives will invest in technology through acquisition, joint ventures or external venture funds. Almost two-thirds of respondents (61%) are experiencing difficulties securing the right skills and talent.

“In terms of investing in technology, the answer to the buy-versus-build question for most companies is tilting toward buy. At the same time, the shortage of talent is a constraint on growth and acquiring the skills needed to underpin future growth is increasingly part of the current M&A story,” said Steve Krouskos, EY Global Vice Chair, in the report.

He also noted that the trade debate between the United States and her partners has reduced M&A activity.

“The ongoing trade issues in a number of the major economies have not caused dealmakers to shelve plans,” he said. “The imperative to transform outweighs the risk of uncertainty. As long as this continues, the drumbeat for M&A will go on. Deals continue to be a powerful means to reshape portfolios and accelerate the transformation imperative facing CEOs.”

Finally, the survey revealed a gloomy economic outlook. At least 62% of respondents in the United Kingdom expect a downturn. And 80% of German corporations responding to the survey expect a recession.

The U.S. was the most upbeat with 78% of respondents not expecting an economic downturn.

[Related: Three Takeaways from the New KKR Consumer Report]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/01/Bink-app-shot.png
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-22-29-49-Screenshot-Pawson-2.png
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…

https://dailyalts.com/wp-content/uploads/2022/01/47752022922_e4569a2f0e_c.jpg
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…

https://dailyalts.com/wp-content/uploads/2022/01/Screenshot-2022-01-04-at-18-48-26-超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company Parametrix.ai has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…