As we near the holiday season, most businesses, ranging from small companies to larger multi-national corporations are already looking ahead to try and predict what 2017 will hold. It’s important for business owners to always be thinking ahead so they can make the right decisions on the consumer-side and map out their next moves including deals like possible mergers and acquisitions.
Firmex recently released their comprehensive Mid-Market M&A report, entitled “Riding Out the Downturn.” While this focuses specifically on the factors impacting the mergers and acquisition landscape, it also highlights some of the most important events likely to shape the global economy and influence business owners at all levels.
According to this and other business media outlets, the following are some events business owners should keep an eye on heading into 2017.
After the initial British vote to officially exit the UK, it felt like the consequences were going to be dramatic. There was a sharp drop in the global markets after the results of the vote were announced, and many global leaders were warning of dire repercussions.
The impact of the Brexit vote has been softened quite a bit since the initial news broke, but many businesses are still waiting to see what changes it might bring about in 2017. Much of the ultimate impact over the next year will depend on what happens with negotiations between the UK and the EU.
So far, some businesses have considered moving their headquarters out of the UK, and there have been some freezes in some potential deals.
Weak Global Growth
Forecasters and analysts are predicting growth at the global level will remain relatively weak next year, and there will also be ups and downs impacting financial markets. Countries throughout the world have been putting short-term money into their financial systems, and that paired with US inflation and regulatory changes in China could spell rough waters ahead.
U.S. Presidential Elections
Anytime it’s an election year in the U.S, financial markets and businesses tend to hold their breath and take a “wait-and-see” approach to dealmaking, spending, and hiring. That’s certainly the case this year.
Some of the ways this presidential race could particularly impact the business world includes taxes, regulations and whether or not the status quo and a sense of consistency will be maintained. The presidential candidates have sharply divergent views on many of the things that would most impact businesses of all sizes.
While many industries have taken a hit over recent years, healthcare has been an area that’s seen a lot of growth because of the aging U.S. population, even in the face of increasing regulation from the implementation of the Affordable Care Act.
In 2017, many analysts are expecting there will continue to be large-scale mergers and acquisitions in healthcare, particularly as they work to figure out the best role to take on in the system that’s been created by the ACA.
Even small business owners have to keep a close eye on the macroeconomic factors that can change the way they do business, and the above are some of the largest ones that will likely affect every world economy and the businesses that comprise them.