Does seizing competitive advantage mean deals take center stage?

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M&A outlook Deal intentions rebound as companies pack pipelines with five or more deals Confidence in dealmaking is on the rebound in Mexico, with 37% of executives expecting the global M&A market to improve in the next 12 months — that number is up 25 percentage points from Mexican respondents’ reported intentions just six months ago. Local sentiment is similarly upbeat, with 31% of executives anticipating improvement in the M&A market, up from 13% six months ago. In the next 12 months, 41% of Mexican companies say they are pursuing M&A, up five percentage points from April. Although this is still down from record highs, positive sentiment around deal activity remains above the global average. 67% Expectations to pursue an acquisition 57% 56% 59% 57% 50% 41% 40% 38% 31% 27% 29% 25% 29% 24% 39% 35% 46% 30% 40% 33% 50% 57% 55% 41% 36% Capital Confidence Barometer average 36% 0% 0% Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct Apr Oct 2010 2011 2012 2013 2014 2015 2016 Mexico Global Confidence around deal fundamentals has increased as well, with Mexican executives feeling more positive about the number and quality of acquisition opportunities as well as the likelihood of closing deals. Number of acquisition opportunities Percent Quality of acquisition opportunities Percent Likelihood of closing acquisition Percent 48 46 41 Positive 14 Positive 20 Positive 14 46 26 19 36 36 33 Stable 66 Stable 59 Stable 72 31 46 53 16 18 26 Negative 20 Negative 21 Negative 14 23 28 28 Oct 15 Apr 16 Oct 16 4 | Capital Confidence Barometer
M&A outlook A healthy deal pipeline continues to support this confidence: 59% say they have five or more deals in their pipelines, up from a mere 15% six months ago. Over the next 12 months, more than Mexico half expect their number of pipeline deals to increase, and a third expect to complete more deals; one in five say they expect to close five or more deals in that timeframe. Global 59+41+M 59% 49+51+M have five or more deals in the pipeline 49% 53+47+M 19+81+M 53% 19% expect to see their pipeline numbers to increase in the next 12 months expect to complete five or more acquisitions in the next 12 months 26+74+M 11+89+M 26% 11% Over the next 12 months, more than half expect their number of pipeline deals to increase, and a third expect to complete more deals; one in five say they expect to close five or more deals in that timeframe. Capital Confidence Barometer | 5
Page 1 and 2: Global Capital Confidence Barometer
Page 3 and 4: Disruptive trends and political unc
Page 5: Corporate strategy Disruptive trend
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Page 12: EY | Assurance | Tax | Transactions

Does seizing competitive advantage mean deals take center stage?

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