Throngs of CEOs expect to pursue M&A this year, as a perceived need to stay digitally relevant combines with a supportive economic climate to supercharge company growth ambitions.
According to a new survey by EY, some 79% of U.S. executives expect to embark on an M&A transaction in the next 12 months, well above the survey’s long-term average of 47%.
Their enthusiasm comes as the economy continues to recover, notwithstanding the odd bump in the road, and Donald Trump promises tax reform that could give companies piles more capital to invest.
EY’s survey was based on interviews with more than 2,300 executives from large companies around the world, including 459 from the U.S.
A little more than half of the U.S. executives think Trump is creating more M&A opportunities, though many aren’t waiting around for his planned tax cuts to come through. First-quarter deal volumes jumped 22% on year to $366 billion, their highest quarterly level in a decade.
As recently reported by Chief Executive, executives are increasingly mulling partnerships with tech startups to boost their digital know-how, rather than trying to innovate entirely in-house. The need for CEOs to invest comes as new technologies such as the Internet of Things, big data and artificial intelligence change the way companies in almost every industry do business.
“They must be cognizant of political uncertainties, while actively maintaining their search for strategic opportunities to drive growth,” EY Americas vice-chair William M. Casey said. “The risk of being left behind is far too great to ignore—so the deals continue.”
Even so, many respondents still expect to enjoy a tailwind, with 58% seeing the U.S. economy improving over the next 12 months, compared to just 4% a year earlier. Such confidence has been reflected in a string of other surveys, including a PwC poll of private company executives released yesterday that showed 66% are optimistic about the economy.
Technological disruption, meanwhile, while driving many deals, is also preventing others. Executives in the U.S. cited cybersecurity as the top reason for killing a deal in the past 12 months, followed by issues uncovered during due diligence and economic and political instability.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
