CEOs Still Plan On M&A, Despite Economic Uncertainty
May 12, 2025
When it comes to tariffs, 98% of businesses are concerned about their impact, according to the most recent EY-Parthenon CEO Outlook Survey, conducted in March and April. Indeed, geopolitical, macroeconomic and trade uncertainty was ranked by 42% of businesses across the globe as the top stumbling block to achieve their growth targets in the next 12 months. Business leaders are moving quickly to reduce impacts—44% are looking to adjust supply chains, 42% are looking at product design innovations to minimize reliance on items that will be subject to tariffs, 42% are looking at new cost management strategies, and 39% are relocating their operational assets to different areas. On top of the tariff threats, 71% of CEOs said that inflation continues to challenge their business.
However, CEOs are still planning on M&A as a path to growth. Deals were long predicted to boom this year, but many have stalled in the face of uncertainty. More than half—57%—said they are planning on M&A in the next 12 months. However, what is planned and what happens can be two very different things. More than one in five companies stopped a planned investment in response to the economic uncertainty, while 54% delayed one. And 71% of companies said that problems in determining fair valuations could get in the way of dealmaking until the economy solidifies. It’s unclear when that might happen, considering trade deals and tariff rates seem to be constantly moving targets.