Enterprise confidence amongst UK CEOs is rising, regardless of ongoing geopolitical and macroeconomic challenges. In accordance to a brand new EY-Parthenon survey of firm leaders, greater than three-in-five are planning M&A strikes over the approaching 12 months.
Silvia Rindone, UK&I managing associate for technique and transactions, commented, “With M&A exercise set to rebound in 2025, pushed by strategic imperatives, digital innovation, and a extra beneficial regulatory local weather, enterprise leaders should prioritise diligent, data-driven funding choices to capitalise on rising alternatives.”
The survey evaluates optimism ranges and gives insights on capital allocation, funding and transformation methods – and the willingness to spend on new acquisitions is a key indicator of that. Suggesting issues have been looking up in that regard, a 99% majority stated they count on to actively pursue transaction initiatives over the following 12 months – and 62% of these could be looking at M&A, a dramatic soar from 40% in September 2024, and again on-par with world CEO sentiment.
On the similar time, CEOs appear extra assured in UK companies, when it comes to discovering new companions. The UK stays the highest vacation spot for capital funding, with 52% of UK CEOs planning to make investments domestically over the following 12 months, adopted by 20% investing in america and 18% in France.
Supply: EY Parthenon
General, the survey discovered that 82% of UK CEOs felt very or considerably optimistic concerning the enterprise panorama over the following 12 months, a rise from 67% in September 2024. Particularly, as is usually the case, CEOs are most assured in their very own prospects – with 78% feeling optimistic about income progress, 80% about profitability, and 77% about sustaining a aggressive place within the subsequent 12 months.
Nonetheless, that isn’t to say there aren’t any dangers on the horizon. A 71% chunk of respondents stated that fast technological developments, evolving sustainability agendas and geopolitical tensions will see a shift in compliance being a key strategic issue, separating business leaders from laggards.
In line with this, UK CEOs acknowledge that their transformation method wants enchancment in sure areas. A 19% portion stated they want to enhance the velocity of transformation, whereas an analogous 18% stated they want to enhance transformation outcomes by means of higher collaboration throughout features and the c-suite. And 24% stated price and return on funding (ROI) is influencing its organisation’s method to digital transformation initiatives.
Rindone concluded, “Our newest CEO Outlook displays a resilient and forward-thinking mindset amongst UK CEOs. Nonetheless, with practically 1 / 4 citing price and ROI as key elements in shaping their digital transformation methods, it’s clear that companies are searching for a stability between innovation and sustainable progress. The approaching 12 months might be essential for organisations to refine their transformation method and unlock long-term worth.”
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