Most real estate, hospitality and construction executives still expect growth with M&A improving their digital transformation.
The global economy has just passed 10 years of economic expansion. We continue to enjoy an extraordinary stock market, historically low-interest rates and high consumer confidence. But, to use a baseball metaphor, we’re now well into extra innings in the real estate, hospitality and construction (RHC) life cycle. It’s getting harder to find good deals — a perspective that’s supported by the latest edition of the EY Global Capital Confidence Barometer.
For the first time in three years, expectations around dealmaking intentions have fallen below the historic 10-year Capital Confidence Barometer average. Thirty-eight percent of RHC executives say they plan on pursuing M&A in the upcoming year, down from 53% six months ago. There is a clear indication in these numbers that RHC companies are being more deliberate and taking more time in pursuing and closing strategic transactions. Almost two-thirds of RHC executives are bracing themselves for an increase in hostile and competitive bidding in the 12 months ahead. Seven out of 10 expect private equity to be a major acquirer of assets. Meanwhile, nearly two-thirds expect an increase in cross-sector M&A driven by technology and digitalization.
Read the full article.https://www.ey.com/en_gl/ccb/21/real-estate-hospitality-construction-mergers-acquisitions
