TRENDING
CEO Outlook Pulse Survey – Key takeaways
• Deal appetite has increased significantly rising to 56 % from 37 % in September 2024 – the survey ’ s highest deal ambitions for almost two years .
• Notably , the most confident CEOs are significantly more focused on pursuing M & A in the next 12 months than the least confident CEOs ( 70 % vs 17 %).
• Nearly half of CEOs are also looking to sell assets , with 48 % planning a divestment or carve-out , up from 44 % in September 2024 – adding further momentum to the deal market in the year ahead .
• Mega deals are also expected to define the M & A environment for 2025 with 60 % of global CEOs expecting to see an increase in deals over US $ 10b .
• In terms of geographies , the US , Canada and Mexico are among the top five hotspots for global investment in 2025 , which could help global companies navigate potential tariffs from the US .
technological shifts , and always placing humans at the center as the best path to sustainable value creation .”
The survey highlights that strategic vision and investment in people – including upskilling employees to keep pace with technological innovation – are considered essential levers for growth .
Eighty-five per cent of global CEO respondents believe that addressing capability gaps and striking the right balance between human talent and new technology will be a crucial driver for success in the year ahead . in September 2024 – the Outlook Survey ’ s highest deal ambitions for almost two years . This signals that a strong rebound is on the horizon for deals in 2025 , continuing the upward trend of resilient M & A activity recorded in 2024 . Notably , the most confident CEO respondents are significantly more focused on pursuing M & A in the next 12 months than the least confident CEOs ( 70 % vs . 17 %). Overall , 96 % intend to pursue transaction initiatives over the next 12 months ( M & A ; divestments , spin-offs or IPOs ; and joint ventures or strategic alliances ).
There are also indications that 2025 could see an uptick in megadeals , with 60 % of global CEO respondents expecting to see an increase in deals more than US $ 10b . Nearly half of CEO respondents are also looking to sell assets , with 48 % planning a divestment or carve-out , up from 44 % in September 2024 – adding further momentum to the deal market in the year ahead .
Andrea Guerzoni , EY Global Vice Chair – Strategy and Transactions , said : “ The rationale for M & A is strong . Digital transformation remains a critical driver of deal strategies , with AI capabilities increasingly driving corporate acquisition strategies . At the same time , defensive consolidation helps companies build operational and competitive resilience . Cost synergies become more compelling in challenging economic environments . Activist investors continue pushing for strategic portfolio optimization and more accommodative credit conditions have improved M & A financing .”
Adaptability is the ultimate advantage in today ’ s landscape . Organizations that embrace transformation can turn disruption into opportunity .
However , caution remains around the talent landscape , with 42 % of CEO respondents indicating that declining profitability could lead to workforce reductions .
Notably , the most confident CEOs are likely to aim for better employee and customer experiences through transformation ( 60 % vs . 30 % of the least confident CEOs ), while the least confident CEOs focus on improving top-line growth and margin expansion ( 40 % vs . 20 % of the most confident CEOs ).
The overall appetite among global CEO respondents for mergers and acquisitions ( M & A ) in the next year has increased significantly , rising to 56 % from 37 %
The survey reveals that US , Canada and Mexico are among the top five hotspots for global investment in 2025 , which could help global companies navigate potential tariffs from the US .
From an industry perspective , real estate , technology and consumer products are the top three M & A destinations .
Guerzoni said : “ CEOs across the globe are adapting to a new normal of complex change . By adopting a transformation mindset with M & A as a key catalyst , the most confident CEOs will mitigate disruption and drive sustainable growth in 2025 .” p
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