BY Fraser Tennant
Confidence among global chief executives is returning to pre-pandemic levels, with eight out of 10 stating a willingness to launch aggressive M&A plans in the next three years, according to a new KPMG report.
In its ‘KPMG 2021 CEO Outlook’, which asked more than 1300 global chief executives about their strategies and outlook over a three-year period, KPMG found that 60 percent of leaders are confident about the global economy's growth prospects – up from 42 percent in January/February 2021.
Moreover, the prospect of a stronger global economy is leading chief executives to invest in expansion and business transformation, with 69 percent of senior executives identifying inorganic methods, such as joint ventures, M&A and strategic alliances, as their organisation’s main strategy for growth.
In terms of M&A, KPMG reveals that a majority (87 percent) of global leaders stated that they are looking to make acquisitions in the next three years to help grow and transform their businesses.
“Despite the continued uncertainty around the pandemic, chief executives are increasingly confident that the global economy is coming back strong,” said Bill Thomas, global chairman and chief executive of KPMG. “This confidence has put leadership in an aggressive growth stance. While inorganic growth strategies are a priority, chief executives are also looking to expand organically and continue to assess the future of work to ensure they can attract top talent.”
Another positive noted by the KPMG report is a greater focus on environmental, social and governance (ESG) among leaders. “If there is a positive to come out of the past 18 months, it is that chief executives are increasingly putting ESG at the heart of their recovery and long-term growth strategies. The unfolding climate and societal crises have made it clear that we need to change our ways and work together.”
To this end, the report highlights that 30 percent of chief executives plan to invest more than 10 percent of their revenues into sustainability measures and programmes over the next three years.
Mr Thomas concluded: “I am encouraged about what the future holds because business leaders are acknowledging that they need to be the drivers of positive change, supporting measures to tackle environmental dangers, as well as societal challenges – from gender and race to equity and social mobility.”
News: CEOs back to pre-pandemic levels of confidence, KPMG survey shows