Global Corporate Divestment Study 2018

12 April 2018

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First quarter 2018 M&A activity surpassed $1 trillion in deals as companies tried to address the pressures of ongoing digital disruption, with strategic divestments high on the agenda.
 
According to EY’s latest Global Corporate Divestment Study, produced in association with Mergermarket, an Acuris company, the number of executives planning to complete a divestment has doubled from last year (43% to 87%), illustrating that this growth strategy has climbed the list of corporate priorities.
 
Other key findings from this survey of more than 900 corporate executives worldwide include:
  • 74% of executives say their divestments were directly influenced by the evolving technological landscape, up from 55% in 2017.
  • 50% say the need to fund new technology investments will make them more likely to divest, using the proceeds to improve operating efficiency and address changing customer needs in their core businesses.
  • 56% of executives admit they held on to assets longer than they should have instead of shedding laggard assets which may have sat too long in their portfolios.
  • 47% of companies say that macroeconomic and geopolitical triggers drive their divestment decisions.
  • 80% highlight tax policy changes as one of the most significant geopolitical shifts that may affect plans to divest.
To download the full study, along with reports focusing on the consumer products and retail, financial services, industrials, life sciences, private equity and technology sectors, visit ey.com/divest.