RSM is a firm that specializes in legal & advisory services for tax. They operate in 120 countries and have a presence in each of the top 40 major business centres throughout the world.
They recently highlighted a positive dealmaking outlook, shaped by a rigorous focus on sustainability, supply chain due diligence and digital transformation.
European M&A activity looks set to ramp up beyond 2024 and is being driven by supply chain optimisation, according to the latest research from RSM.
The Italian branch of the leading global assurance, tax and consulting services provider discovered a positive dealmaking outlook, shaped in large part by business leaders’ rigorous focus on sustainability, supply chain due diligence and digital transformation.
In collaboration with Mergermarket, RSM Italy surveyed senior executives based in Germany, Greece, Italy and Spain to produce its Chain Reaction report.
“Our Chain Reaction report sheds light on how corporates and financial investors are adapting to an uncharted and evolving regulatory environment and what it means in the immediate future. While our research points to strong confidence in M&A activity in Europe over the next 12 months, it is also tempered by the extent to which we see businesses prioritising the de-risking of their supply chains and their laser-like focus on regulatory compliance. The key consideration for businesses is the triumvirate of unlocking growth, while maintaining compliance and measuring societal impact. To manage this balance effectively, our survey highlights the emphasis investors are placing on leaders using external specialists to fully understand supply chain risks, and to strategise transactions to unlock maximum value.” - Marianna Vintiadis, Partner and Head of Forensic Investigations & Intelligence at RSM Italy.
Key findings from RSM Italy’s research include:
Heightened dealmaking confidence across the continent, with two–thirds (67%) of businesses planning to undertake between one and three transactions over the next 12 months.
Industrials and chemicals (28%), consumer and leisure (22%) and energy, mining and utilities (22%) were identified as the highest-growing industries for dealmaking.
Germany (28%), Spain and Portugal (25%) and Austria and Switzerland (17%) are likely to see the greatest M&A activity growth.
Leaders in Germany (87%), Italy (87%) and Spain (80%) cite maintaining sustainable supply chains as a very important competitive advantage.
“Through our work with internationally active and growth-focused clients in Europe, the key marker of success is their early preparation for change. RSM Italy’s research pinpoints that, despite geopolitical and economic headwinds, the appetite for dealmaking remains undiminished and will pick up after a sluggish 2023.” - Gregor Schmidt, Regional Leader – Europe at RSM International.
RSM Italy’s survey reveals 45% of businesses are targeting M&A activity to pursue digital transformation, with 43% doing so to optimise supply chains amid external risks and headwinds.
Consequently, an overwhelming 91% of businesses plan to mitigate these challenges by using external experts to conduct due diligence.
More than two-thirds (68%) of leaders are planning to conduct due diligence on a target company’s global supply chain in the next two years – representing a 42% increase on the proportion doing so over the past couple of years.
Source: Supply Chain Digital
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