Prolonged upward M&A trend continues despite geopolitical, economic concerns as C-suite builds optionality into strategic decisions.
In today’s environment, it appears that the only certainty is uncertainty. The latest EY Global Capital Confidence Barometer (pdf) finds executives dealing with numerous interconnected challenges and proactively managing them.
The strategic objective is clear — finding growth. But geopolitical risks, the recasting of trade and tariff rules, zigzagging monetary policy, technology and innovation, as well as evolving regulatory policies, offer obstacles. How best to navigate them?
Go for bespoke, not off-the-shelf: not all issues impact each company in the same way. Executives need to continually unlock and assess the impact of challenges — and the possibility of opportunities — for their business portfolio. Be prepared to recast long-held assumptions and follow a tailor-made path to future growth.
Keep options open: scenario planning and threat analysis enable business leaders to better highlight risks to current operations. Understanding their own ecosystem, their competitors’ ecosystems and the likely path of innovation will help companies make smart choices about what and when to buy and sell to create the portfolio fit for the future.
Buy for tomorrow today: the talent and technology that underpinned growth yesterday is not necessarily best suited to unlock growth tomorrow. With a shortage of technical and digital capabilities, executives need to continually reinvent their talent and technology strategies. In many cases, acquiring will be the fastest way to secure these in-demand assets.