Why tech companies should revisit their capital allocation strategies now

In this episode, members of the EY Strategy and Transactions team explore the pain points companies are experiencing around capital investments and what they need to do next.

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We’ve seen the tech sector hit near-record highs as companies increase their value chain exposure and drive disruption and transformation across subsectors. On the surface, everything looks great, but are there hidden challenges that some of the recent successes may be obscuring? Our speakers explain why now is the time for tech companies to pause, reflect and strategize differently.

Capital allocations is a broad topic and EY teams recommend a focus on assessing, planning, reviewing and prioritizing the uses of financial resources across an organization. Some categories we explore are: debt repayment, dividends, capital investment, sales and marketing expenditures, share repurchases, acquisitions and R&D. 

EY teams have developed a framework that consistently evaluates these investment decisions and monitors progress, enabling executives to prioritize the many choices and demands on their capital.

Join Barak and members of our EY Americas Strategy and Transactions team as they dive into the differences between these expenditures and the impact they can have on your bottom line.

  • Barak Ravid, EY-Parthenon Americas Leader 

  • Ryan Citro, Principal, Ernst & Young LLP 

  • Erika S. Maymon, Senior Manager, Ernst & Young LLP 

  • Akhilesh Kulkarni, Senior Manager, Ernst & Young LLP 

Key takeaways include:

We share key findings from the global capital allocation report based on a survey of chief financial officers to better understand how they think about their capital allocation strategy. Many CFOs felt that their strategy fell short and needed work to improve efficiencies and agility to respond to unexpected changes.

Lastly, our speakers focus on key considerations to make customized decisions leading to a well-defined governance process, continually entering new data to build agility and determining long- and short-term objectives.

For your convenience, full text transcript of this podcast is also available.


Episode 3


19m 18s