You don’t need us to tell you that the world is an uncertain place right now. Both geopolitically and economically, everything feels in a state of flux at best. The more pessimistic amongst us might characterise it as feeling like we’re standing on the edge of a precipice.
Doing business in this kind of environment isn’t easy. Business thrives on stability and certainty, two qualities that are woefully scarce at present. But rather than allowing instability and uncertainty to engulf them, Irish business leaders are proactively rising to the challenge.
That’s the overall message of EY’s latest CEO Outlook report, based on a global survey of C-Suite executives. Breaking down the findings from the study’s Irish participants, it found that 57% of the country’s CEOs regard geopolitical disruption as the primary threat to growth going forward. But far from sitting still, Irish executives are already busy adapting to the new economic realities. 90% have revised their investment strategies, with changes focusing on multiple areas including supply chains, technology and merger and acquisition (M&A) activity.
Less is more in M&A
On the latter, the findings of the report make for interesting reading. Analysis of recent M&A activity involving Irish companies suggests that leaders are becoming cautious about pursuing growth for growth’s sake. A new, more select approach to dealmaking appears to be emerging. Though that is by no means translating into less investment.
EY’s data shows that the number of deals in Ireland fell by 16% between January and April 2025. And yet the value of disclosed deals leapt by a significant 42%, from $17 billion to $24.1 billion. In one sense, this is surprising – we might expect economic uncertainty to result in more caution, and therefore a drop in investment.
The fact that more money is being invested in fewer deals tells us that leaders are becoming more choosy about the corporate transactions they pursue. They are clearly still willing to invest, and invest big. But what matters is getting the right deal. It tells us that current M&A strategy has become more nuanced. The belief that you need to invest to grow is still there. But how you grow is now paramount. And when leaders find a good fit, they go all in.
EY’s survey also reveals exactly where Irish business leaders are focusing their attention. 47% of respondents said they were focusing on acquiring companies for their technology or intellectual property, a clear indication of where executives see value and resilience holding strong going forward. 40% are looking at large-scale acquisitions that can help them expand and improve efficiencies. The two salient points of information here are that they are looking at ‘large scale’ deals, confirming the willingness to invest big. And the fact that they are looking for investments that help to drive efficiencies, a critical strategy for leaning into tough economic headwinds.
What is clear is that this is very much the time to double down on your market research and due diligence around deals, to be clear about the strategy you want to pursue, and be as sure as possible when you do invest that it is going to deliver tangible results. Xeinadin’s Corporate Finance team can help you with this. We specialise in providing comprehensive commercial and strategic guidance for mergers, acquisitions, capital raises, and business disposals. To find out more about how we can be a crucial part of your team as you pursue your next deal, get in touch with us today.
