Mergers, acquisitions, and transactions
Business imperatives are also influencing CEOs’ growth strategies around transactions, motivated by the pursuit of technology and innovative startups, expansion of market share, adapting to shifts in customer behavior, and ensuring supply chain security.
The M&A trends show that a staggering 96% of CEOs are actively considering transactions. While 64% are contemplating divestments, IPOs, and spin-offs, 50% plan to explore M&A. Along with these, 28% are looking at joint ventures or strategic alliances in the transactions mix.
CEOs are confident of their organizations’ ability to navigate the complexities of structuring deals. This includes functional (52%) and advanced capabilities (42%) in managing tax implications of the deal, anticipating potential regulatory challenges ahead of the deal, integration challenges. All of this can include cultural alignment and data and cybersecurity risks, as well as opportunities.
However, the survey interestingly shows that the CEOs are most confident of their organizations’ ability to have a comprehensive narrative to engage all stakeholders (66%), covering areas such as inclusive growth, job creation, investing in communities and social impact.
Along with the above-mentioned factors, sustainability is increasingly becoming integral to M&A strategies, influencing integration plans, deal terms, target identification, and due diligence.
