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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.