EY research reveals falling appetite for acquisitions


The corporate appetite for acquisitions is at a four-year low, according to research by professional services firm EY conducted in 45 countries, including Hungary. The fall is considered temporary, however, with the momentum of the transaction market expected to pick up again from next year.

Despite the fact that the number of mergers and acquisitions (M&As) broke records this year, the corporate appetite for acquisitions has never been lower in the last four years, notes EY. This negative mood is prompted by growing regulatory uncertainties, as well as trade disputes surrounding Brexit and China versus the U.S.

The majority of respondents named geopolitical uncertainty as the biggest risk. Less than half of companies are planning to make an acquisition in the next 12 months, down from nearly 60% last year.

"The geopolitical, trade, and tariff-related concerns made many heads decide to suspend acquisitions, so despite the unexpectedly strong first half of 2018, fewer transactions may happen than expected," says Botond Rencz, EYʼs country manager for Hungary. "This hiatus is presumably temporary, and the momentum should pick up in the second half of 2019."

The growth prospects of the M&A market are further enhanced by strong macroeconomic bases, with around 90% of respondents expecting the transactional environment to improve. According to the vast majority of those surveyed, the growth prospects of the global economy are strengthening, with a mere 2% of company heads expecting market instabilities in the short term.


Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga Analysis

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.