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