More than a third of Irish businesses are considering a merger or acquisition in the next 12 months.
A new survey by Aon shows growing optimism among dealmakers, signalling a more positive outlook.
Based on a survey of 331 businesses across Ireland carried out between June and July, firms reported the protection and growth of market share as the top reason they are considering M&A activity, followed by increasing business efficiencies and expanding into new areas.
More than one in three businesses are considering M&A targets across multiple jurisdictions. The rest of EMEA (outside of Ireland) is the top overseas region for intended activity, followed by North America.
Aon Ireland head of M&A Clodagh Rochford said with the pace of inflation slowing and lower interest rates beginning to reduce the cost of capital, deal-making conditions have improved.
“This is clearly reflected in the findings of our report, which reveal more businesses in Ireland are considering mergers and acquisitions than at any point in the last two years. Those who have engaged in M&A activity over the past 12 months have reaped the rewards,” she said.
“Given the high rate of successful transactions and possibility of further interest rate cuts in the second half of the year, there is good reason to believe that activity will further accelerate in the months ahead.
“However, with significant legislative changes on the horizon and heightened geopolitical tensions, businesses continue to navigate a complex and rapidly evolving M&A landscape.
On a sectoral basis, more than a quarter of firms in the technology, media, and telecom sector are considering M&A activity, followed by the financial and professional services sector.