From left: Aon Ireland head of M&A and transaction solutions Karl Curran and CEO Rachael Ingle. Image: Chris Bellew/Fennell Photography
A new Aon report suggests M&A interest has declined compared to last year, while the focus on cybersecurity has grown.
Only 11pc of Irish businesses are actively considering merger and acquisition (M&A) activity, while the threat of cyberattacks appears to be a growing concern.
That’s according to a new report by Aon, which surveyed 281 businesses across Ireland to gauge their attitudes around M&As.
The majority of these businesses – 62pc – said they consider cybersecurity and technology risks before concluding a M&A deal, which Aon said is a 7pc increase compared to last year.
Karl Curran, Aon Ireland’s head of M&A and transaction solutions, said companies are navigating a “challenging business environment” with increased cyberattacks, a tight labour market and rising operating costs.
He added that these challenges appear to be creating uncertainty, as nearly 90pc of businesses are either “less likely or unsure” on whether they will engage in M&A activity in the coming year.
“The risk landscape for Irish businesses continues to evolve at pace,” Curran said. “Addressing emerging areas of risk such as cybersecurity will be critical to long-term success.
“The impact of potential cyberattacks can be deeply damaging. According to the 2023 Aon Cyber Resilience Report, major cyber incidents typically result in a 9pc decrease in shareholder value for businesses in the 12 months following an attack. In this context, we welcome the findings from today’s report that more firms in Ireland are prioritising cyber risk as part of M&A due diligence.”
The report found that 41pc of large businesses consider cybersecurity due diligence on every deal, while 31pc of medium-sized businesses don’t consider cybersecurity at all in relation to M&A deals.
Of the businesses that are considering M&A deals, it appears those in the technology, media and telecom sector are the most active. More than 25pc of those businesses surveyed said they are considering M&A dealmaking in the next year.
More than 60pc of the businesses that engaged in M&A activity over the past 12 months said the deals had achieved their strategic objectives. Aon said the results suggest that M&A activity may increase if economic conditions improve.
Last year, a similar Aon report suggested 18pc of Irish businesses were considering engaging in M&A activity over the following two years. This report also suggested that the role of cybersecurity is growing more important in M&A deals.
In June, former Europol advisor Brian Honan weighed in on Ireland’s preparedness against cyberattacks, amid concerns that nation state actors and cyber gangs are growing more sophisticated.
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