Global CEOS Expect Increased Corporate Dealmaking in 2025
A recent survey by EY-Parthenon reveals that global chief executives anticipate a significant increase in corporate dealmaking in 2025. This optimism is fueled by the belief that U.S. President Donald Trump's re-election will foster a business-friendly environment.
Key Findings:
* 56% of CEOs intend to actively pursue mergers and acquisitions (M&A) in 2025, a surge from 37% in September.
* 60% of global CEOs expect an increase in transactions exceeding $10 billion, the highest level in nearly two years.
* Confidence in growth has risen to 73.5% since the November election, indicating a positive outlook for the global economy.
Factors Driving M&A Activity:
* Anticipated easing of U.S. borrowing costs
* Expectations of business-friendly policies under Trump
* Increased optimism among corporate leaders
Active Sectors and Target Countries:
* Real estate, technology, and consumer products are expected to witness high M&A activity.
* Canada, the U.S., Mexico, the United Kingdom, and Germany are identified as top investment destinations for 2025.
Transaction Types:
* 96% of CEOs plan to explore various transaction types, including acquisitions, initial public offerings (IPOs), joint ventures, and strategic alliances.
* Around 48% of CEOs intend to consider divestments or carve-outs.
Conclusion:
The EY-Parthenon CEO Outlook Survey suggests a strong resurgence in corporate dealmaking in 2025. With increased CEO confidence and anticipation of a favorable business environment, M&A activity is expected to drive economic growth and reshape industries worldwide.