Some Greek companies with an M&A appetite say their focus will be on acquisitions that will increase operational capabilities, such as efficiency of production or improving the distribution chain, as they look to respond to regulatory and trade challenges and shore up their supply chains. Others indicate a preference for deals that increase sector convergence or fuel growth in an adjacent business field.
Meanwhile, more than three-quarters of Greek executives planning deals say they will be primarily considering cross-border targets. However, their overwhelming expectation that much of their growth over the next three years will come from Europe, combined with the fact that their top five investment destinations are all within the European Union (and the UK), suggest that their cross-border activity will be restricted to within the region.
Greek companies are making bold moves to seize opportunities
As Greek companies look to leapfrog from being the disrupted to becoming the disruptors, they acknowledge they’ll need to transform their current operating models. In doing so, 86% of Greek executives expect they will need to redefine their role in the ecosystem for clarity. An equal percentage are open to partnering with competitors to create new ecosystem solutions. Meanwhile, 71% anticipate that a successful ecosystem-driven transformation will require divestment of nonperforming assets.
Greek executives know all too well that disruptive forces will remain ever present once the pandemic crisis fades. Already, they are planning to make bold moves and act fast to take advantage of opportunities. They’re also looking to build-out their ecosystems beyond the usual suspects, which may mean cooperating with competitors. However, to truly position themselves to become leaders rather than laggards, they will need to get off the M&A sidelines.
One of the biggest lessons companies learned from the global financial crisis is that those that acquired in a time of crisis outperformed those that retreated and retrenched. Making the bold moves inevitably means making M&A a strategic priority.