Company executives are expecting an uptick in M&A activity in 2017, according to a survey from EY called the “Global Capital Confidence Barometer.”

More than 1,700 senior executives were surveyed, including 445 from large US companies.

So far in 2016, there’s been a drop in the number and size of domestic M&A deals. That also follows a record 2015.

EY’s survey found that approximately 75% of the US executives are planning an M&A transaction in the next 12 months.

“Deal intentions are very high, and I think there’s lot of reasons for it,” Bill Casey, EY Americas vice chair of transaction advisory services, told Yahoo Finance.

“I think there’s a continuing pressure on CEOs to grow the business, to increase shareholder value, and activism. And again, companies are looking for in a low growth environment, they’re looking for growth. And our Capital Confidence Barometer still shows that over half of a company’s growth strategy relies on inorganic growth.”

The sorts of deals executives are pursuing is starting to change though.

“Deals are becoming more strategic,” Casey said. “The historic view was generally looking at deals are going to be accretive to the bottom line, increase cost synergies, and that’s changed a bit. I think you’re going to see more deals that are more tactical. Companies are looking at entering new markets, extending their product offerings. The disruption that’s happening because of digitalization is really forcing companies to look much more strategic deals than they’ve looked at in the past.”

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Julia La Roche is a finance reporter at Yahoo Finance.

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