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Does seizing competitive advantage mean deals take center stage?

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M&A outlook<br />

Deal intentions rebound as companies pack pipelines with five or more <strong>deals</strong><br />

Confidence in dealmaking is on the rebound in Mexico, with 37%<br />

of executives expecting the global M&A market to improve in<br />

the next 12 months — that number is up 25 percentage points<br />

from Mexican respondents’ reported intentions just six months<br />

ago. Local sentiment is similarly upbeat, with 31% of executives<br />

anticipating improvement in the M&A market, up from 13% six<br />

months ago.<br />

In the next 12 months, 41% of Mexican companies say they are<br />

pursuing M&A, up five percentage points from April. Although this<br />

is still down from record highs, positive sentiment around deal<br />

activity remains above the global average.<br />

67%<br />

Expectations to pursue an acquisition<br />

57%<br />

56%<br />

59%<br />

57%<br />

50%<br />

41% 40%<br />

38%<br />

31%<br />

27%<br />

29%<br />

25%<br />

29%<br />

24%<br />

39%<br />

35%<br />

46%<br />

30%<br />

40%<br />

33%<br />

50%<br />

57%<br />

55%<br />

41%<br />

36%<br />

Capital Confidence Barometer average 36%<br />

0% 0%<br />

Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct<br />

2010 2011 2012 2013 2014 2015 2016<br />

Mexico<br />

Global<br />

Confidence around deal fundamentals has increased as well, with<br />

Mexican executives feeling more positive about the number and<br />

quality of acquisition opportunities as well as the likelihood of<br />

closing <strong>deals</strong>.<br />

Number of acquisition<br />

opportunities<br />

Percent<br />

Quality of acquisition<br />

opportunities<br />

Percent<br />

Likelihood of<br />

closing acquisition<br />

Percent<br />

48<br />

46<br />

41<br />

Positive<br />

14<br />

Positive<br />

20<br />

Positive<br />

14<br />

46<br />

26<br />

19<br />

36<br />

36<br />

33<br />

Stable<br />

66<br />

Stable<br />

59<br />

Stable<br />

72<br />

31<br />

46<br />

53<br />

16<br />

18<br />

26<br />

Negative<br />

20<br />

Negative<br />

21<br />

Negative<br />

14<br />

23<br />

28<br />

28<br />

Oct 15 Apr 16 Oct 16<br />

4 | Capital Confidence Barometer

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