Strengthening optimism around the economy may be driving entrepreneurs to pursue deals to accelerate their growth. A majority (72%) of all respondents confirmed they are considering a strategic transaction within the next 18 months. This figure jumps to 91% for entrepreneurs with US$5m or more in revenue, indicating a strong appetite for market moves among bigger businesses. This enthusiasm is similar to that of large corporate CEOs in the US — according to the CEO Outlook Pulse Survey from September 2024, 98% of CEOs expect to pursue strategic transactions in the coming year.
Some entrepreneurial dealmaking is already underway. Of those considering a deal, 39% reported that they are actively planning for a strategic transaction, including 51% of women entrepreneurs and 55% of entrepreneurs with US$5m or more in revenues. This proactive approach highlights the urgency and readiness among entrepreneurs to capitalize on favorable market conditions.
Overall, mergers and acquisitions are the leading target (75%), followed by private sales (58%) and IPOs (39%). This robust pipeline of deals suggests that entrepreneurs are keen to leverage strategic transactions to drive growth and scale their businesses.
Certain demographics stand out in their eagerness to pursue strategic transactions. Women entrepreneurs are particularly active, with 81% planning for a strategic transaction vs. 72% of all respondents. Similarly, entrepreneurs in the industrials and energy sectors show a high level of interest, with 95% considering a strategic transaction compared to 72% overall.
Transaction insights for entrepreneurs
The entrepreneurial community is poised for a wave of strategic transactions, driven by optimism and a favorable market environment. As more entrepreneurs and established CEOs alike prepare for these moves, the landscape is set for significant activity in the coming months. The broader market outlook is also encouraging. IPO proceeds over the first three quarters of 2024 have outpaced the full-year levels of 2023, and deal volume has more than doubled compared to 2023, according to the EY Q3 US IPO Trends Report. A healthy public market is likely to have a cascading effect on the broader appetite for strategic transactions, further fueling entrepreneurial optimism for 2025 and beyond.