The share of companies globally planning mergers and acquisitions rose from 48 in 2021 to 59 percent in 2022, the highest level since 2010, when the survey was first conducted, consulting firm Ernst and Young (EY) Germany said on Tuesday.
"In view of high corporate profits, high share prices and simultaneously low interest rates, there is a lot of money in the market -- in some cases very high prices are being paid," said Constantin Gall, managing partner, strategy and transactions, at EY.
The most frequently cited reasons for planned acquisitions were improving operational capabilities and strengthening companies' environmental social governance (ESG) rankings, with 15 percent and 12 percent, respectively, according to the survey of more than 2,400 chief executive officers (CEOs) of major companies worldwide.
ESG is increasingly becoming a value-driving factor, Gall said. "Investors are now looking very closely, demanding progress from companies and driving forward transformation."
The United States was the top investment country for companies worldwide, followed by the United Kingdom, China and India. Germany lost its top position from the previous year and came in fifth place in this year's ranking of the most important target countries for mergers and acquisitions, the study found.
Only 45 percent of the German companies surveyed expected to make acquisitions in the coming 12 months, the lowest figure since 2014, the survey found. A year ago, 64 percent of them were planning to make acquisitions in the coming year.
Around one in three German companies had not completed or even canceled a planned acquisition in the past 12 months due to the COVID-19 pandemic, according to the survey.
京公网安备 11010202009201号