Home Business NewsBusiness Two-thirds of UK CEOs to step-up M&A in 2022

Two-thirds of UK CEOs to step-up M&A in 2022

by LLB Reporter
14th Feb 22 12:02 pm

Most UK corporates are expecting to accelerate investment and undertake mergers and acquisitions (M&A) this year, according to the findings of the inaugural EY 2022 CEO Outlook Survey.

The survey revealed that UK CEOs are responding to the immediate challenges thrown up by the pandemic, whilst taking bold decisions to build long-term value. It found that appetite for M&A by UK CEOs remains strong, with two-thirds of respondents (66%) expecting to transact in the next 12 months, compared to 59% globally and 57% of executives surveyed last year. The UK remains the second most attractive inbound destination for deals globally, behind the US, particularly in sectors it has global strengths, including financial services, fintech and high-end consumer and industrials.

The CEO Survey also revealed that UK companies are anticipating a significant amount of private equity (PE) activity, with 45% of UK CEOs expecting strong competition from PE buyers in the deal market, compared with 21% globally.

Steve Ivermee, UK&I Strategy and Transactions Managing Partner at EY, comments: “For many companies, M&A remains a fundamental part of how they act on and deliver on their strategic growth plans. From rationalising their portfolio, to digital transformations and improving their ESG profiles, companies are using deals to reshape their business at pace. Given the intense level of deal activity we’ve seen in the last two years, many companies will be integrating recently acquired assets, but UK CEOs are still signalling that they remain strategically poised to buy assets that support their growth ambitions.”

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