The survey of 225 executives found three buy-side drivers of M&A in Europe will be consolidation (57%), increased appetite from foreign acquirers (56%), and cash-rich corporate acquirers (55%).
In particular the report, titled European M&A Outlook: a study of European M&A, found consolidation is particularly evident in the telecommunications sector, including Liberty Global’s purchases of Ziggo for €8bn and All3Media for €672m.
TMT deal volume increased 10% in the first half of 2014, compared to the same period in 2013, and value jumped 34% to €66bn (£52bn).
On the sell-side, the lead drivers of M&A activity are expected to be capital raising for expansion in faster growing areas (67%), distress driven M&A (59%) and non-core asset sales from larger companies (56%).
Thomas Meyding, head of CMS Corporate Group, said: “Our report echoes the sentiment of increasing market confidence as evidenced by the high level of M&A activity this year and in particular the most recent announcements of major transactions by German companies”.
However, he added that continued financial and political uncertainty, particularly in relation to Russia and Ukraine, may still hold back M&A activity in Europe.