Global tensions stall M&A goals – EY survey
A survey of Irish business leaders has found that 90% are changing their investment plans in response to geopolitical instability and trade tensions.
It also found that the percentage of Irish executives planning merger and acquisition (M&A) was significantly lower than the figure for international chief executives.
The figures come from the latest EY CEO Outlook survey, which surveyed 1,200 executives globally – including 40 in Ireland – in March and April.
Delayed investments
The survey found that 57% of Irish business leaders now see geopolitical disruption as the top threat to growth, compared with 42% of international chief executives.
The percentage of Irish respondents expressing worries about the financial impact of tariffs (80%) was, however, slightly below the 85% recorded among their global counterparts.
Almost three-quarters of Irish leaders said that they had delayed a planned investment, while 8% had stopped a planned investment entirely.
Tech targeted
Only 38% of Irish chief executives are planning M&A activity this year – well below the global average of 57%.
EY Ireland partner Carol Murphy said that nearly half of Irish chief executives were eyeing deals that targeted technology or IP, especially AI, that they could not build fast enough in-house. Others, she added, were focused on deals that would reduce costs.
“At the same time, we’re seeing a strong pivot toward lower-risk growth strategies, with two-thirds of CEOs exploring alliances and joint ventures,” Murphy stated.
In-house AI development
The survey also found that Irish companies were sticking to their plans for diversity, equity and inclusion (DE&I), despite some global companies pulling back.
According to the research, 83% in Ireland say that they are maintaining or strengthening their DE&I commitments, compared with 75% of their global peers.
On AI, 40% of Irish respondents said that they are now prioritising developing in-house expertise and governance, while another 40% said that they had increased AI spending.
EY notes that 36% are increasing AI usage after early pilots delivered tangible results.