M&A in M&E to improve

02 Jul,2018

 

By A Correspondent

 

Consulting firm Ernst & Young (EY) has released the 18th edition of the Media & Entertainment Capital Confidence Barometer. The barometer provides a snapshot of M&E respondents’ findings, gauges corporate confidence in the economic outlook, and identifies boardroom trends and practices in the way companies manage their capital agenda.

 

And here’s what the report notes:

“Our research shows that media and entertainment executives are increasingly focused on acquisitions, supported by releasing capital via divestments. Their intentions are driven by confidence in business fundamentals and the near-term performance outlook along with a longer-term need to strategically position their portfolio for future growth. Some additional highlights from our report are provided below:

 

:: All of the media and entertainment executives (100%) see the global economy in which they operate as stable or improving.

:: Executives are highly confident in their current performance – 100% expect improving or stable corporate earnings in the sector.

:: Executives are positive about the M&A market, with 72% expecting it to improve in the next 12 months, up dramatically from 47% six months ago.

:: Deal making competition (88%) has almost doubled in six months — mainly (67%) because of a surge in activity by private equity funds.

:: Portfolio transformation is the top priority for boardrooms, with 73% of respondents identifying it as one of their top three concerns for the next six months.

:: Divestitures will be a critical component of successful portfolio transformation – 74% say that their last portfolio review identified an asset to divest.

 

Here is a link to the key highlights of the study.

 

 

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