More than half (56%) of health executives say they are reviewing their portfolios every quarter or more frequently. And while 42% indicate that activist shareholders are pushing them to make acquisitions as part of their portfolio reshaping, as a result of their last portfolio review, 28% suggest they opted to differentially invest capital in a particular business unit. That said, 23% indicated they identified areas where they need to make acquisitions, understanding that both acquisitions and divestitures form an integral part of any portfolio strategy in a disruption-led environment.
M&A will continue to play a role in growth strategy, even as the focus shifts to organic opportunities
While M&A will play a key role in any growth strategy, 75% of health executives say they’ll be focusing on organic growth in the year ahead, making investments in existing operations, portfolio reshaping and transformational investment in digital and technology their top capital allocation priorities.
As the year progresses, health executives will continue to be bullish about their growth ambitions, but will increase their focus on building resilience to withstand the economic headwinds that may be appearing on the horizon.