FY17 to see strong M&A activity; domestic deal outlook bullish

According to EY’s 14th Global Capital Confidence Barometer (CCB), 95 per cent of the Indian respondents affirm belief of M&A activity to remain stable or improve further through 2016. 

The uptick in business sentiments with regards to M&A activity was driven by improving domestic macroeconomic fundamentals and expectations around distressed asset sales to gain strength despite concerns regarding volatility around commodity prices and currency fluctuations globally.

Moreover, Indian executives’ positive outlook on credit availability and corporate earnings is also expected to encourage corporates to pursue inorganic growth with an eye on driving market expansion.

A healthy deal pipeline also contributed to this bullish outlook, with 54 per cent of the respondents citing that they currently have at least three deals in their pipeline.

Besides, 50 per cent of the Indian respondents expect their deal pipeline to increase through the year.