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Press release
24 Sep 2025
CEO mindset shift: renewed focus on strategic transactions as leaders acclimatize to volatility
57% of CEOs expect geopolitical and economic uncertainty to last well beyond a year – yet indicate growing confidence in their ability to navigate volatility
72% view localization/regionalization as a long-term strategic shift, with many already implementing changes to enhance operational efficiency
48% plan to pursue M&A this year, with a sharp spike (73%) in appetite for joint ventures and strategic alliances
The latest EY-Parthenon CEO Outlook survey reveals that global CEOs are exhibiting resilience and confidence in their ability to navigate an economic landscape characterized by persistent volatility.
Fifty-seven percent of CEO respondents believe current geopolitical and economic uncertainty will last well beyond this year, with 24% believing it will last three years or more. Despite this, the survey’s CEO Confidence Index – a measure from 1 to 100 that quantifies CEO sentiment globally across a wide range of business dimensions – stands at 83, up seven points since the previous survey, in May.
The survey data shows CEO resilience does not stem from confidence that current volatility will ease. Rather, the increase in confidence reflects leaders becoming acclimatized to uncertainty, rewiring operating models, embracing change and, by becoming more agile, finding new ways to thrive in spite of the shifting sands of the global economy.
Learning to thrive amid ongoing uncertainty
One key takeaway from the new survey is that CEO respondents are embracing change and transformation: 52% plan to increase their investments to accelerate portfolio transformation in the next 12 months, with a further 39% maintaining a level of transformation consistent with recent years.
The survey indicates broad agreement that the shape of the global economy is shifting, with localization (such as producing goods in the country where they will be sold), and regionalization (such as creating regional supply chains to serve a particular bloc) gaining significant traction. Seventy-two percent of CEOs surveyed say they regard localization as a long-term strategic shift, with 63% echoing this sentiment from a regional perspective. This shift is largely driven by the need to adapt to changing market dynamics and customer expectations, allowing companies to respond more swiftly to local demands.
This long-term strategic approach is reflected in respondents’ current plans for regional and local implementations: 38% say they have already completed localization plans, with a further 36% currently in the process of implementing. Twenty-one percent say they have completed regionalization plans, with a further 35% mid-implementation. Most agree this is not a trend or a blip, but a significant change in the landscape forming a key part of their strategy over the long term.
CEOs are adjusting their M&A strategies, focusing on strategic partnerships that provide them with flexibility and enable them to respond quickly to market challenges. In the current economic environment, collaboration becomes essential for managing uncertainties and driving growth. In this context, 48% of CEOs plan to initiate M&A transactions this year, reflecting a clear orientation towards integrating resources and expertise from various fields. Additionally, 73% of respondents are seeking partnerships that facilitate their adaptation to the complexities of the current economic landscape, investing in localization and technology.
When it comes to the outlook for geopolitical uncertainty, CEO respondents are split: 57% see it lasting beyond the next 12 months, while 24% expect it to stretch well beyond three years. Yet, despite this, only 19% believe regulatory unpredictability will seriously derail their ambitions – a sign of growing resilience and confidence in steering their companies through a shifting global landscape.
The new study shows CEOs openly acknowledging the challenges they face, even as confidence in their ability to navigate challenges grows. Seventy-nine percent of respondents agree inflation will remain a key operational headwind over the coming year, with tariffs also predicted to be a challenge by 78%. Technology, a key driver of CEOs’ plans to transact this year, also presents challenges as well as opportunities. Sixty-nine percent of respondents believe cybersecurity threats are hampering their efforts to confidently innovate, while 70% say the primary obstacle to digital transformation is not technology itself, but the challenges caused by fragmented and inconsistent regulations across territories.
M&A activity remains robust, with a notable shift toward strategic alliances
In good news for the M&A outlook, almost half of CEOs respondents (48%) expect to pursue traditional mergers and acquisitions (M&A) deals. In further signs of inorganic growth activity, a remarkable 73% anticipate engaging in joint ventures or strategic alliances. This pronounced spike in appetite reflects a preference for agile inorganic transformation strategies in a volatile environment, allowing companies to innovate and grow without the complexities of full acquisitions.
The US continues to be the primary destination for planned M&A activity, followed by Canada, the UK, India and Germany. Notably, 41% of CEO respondents pursuing M&A are targeting companies for their technology or intellectual property (IP), underscoring the critical role of technological innovation in today’s competitive landscape.
Deal appetite is high across most sectors, and particularly strong in Oil & Gas, Insurance and Health, which show the highest appetite for M&A over the next 12 months. Meanwhile, Media & Entertainment, Banking, Metals & Mining, and Technology are most likely to pursue joint ventures and strategic alliances.
When it comes to the outlook for geopolitical uncertainty, CEO respondents are split: 57% see it lasting beyond the next 12 months, while 24% expect it to stretch well beyond three years. Yet, despite this, only 19% believe regulatory unpredictability will seriously derail their ambitions – a sign of growing resilience and confidence in steering their companies through a shifting global landscape.
The new study shows CEOs openly acknowledging the challenges they face, even as confidence in their ability to navigate challenges grows. Seventy-nine percent of respondents agree inflation will remain a key operational headwind over the coming year, with tariffs also predicted to be a challenge by 78%. Technology, a key driver of CEOs’ plans to transact this year, also presents challenges as well as opportunities. Sixty-nine percent of respondents believe cybersecurity threats are hampering their efforts to confidently innovate, while 70% say the primary obstacle to digital transformation is not technology itself, but the challenges caused by fragmented and inconsistent regulations across territories.
M&A activity remains robust, with a notable shift toward strategic alliances
In good news for the M&A outlook, almost half of CEOs respondents (48%) expect to pursue traditional mergers and acquisitions (M&A) deals. In further signs of inorganic growth activity, a remarkable 73% anticipate engaging in joint ventures or strategic alliances. This pronounced spike in appetite reflects a preference for agile inorganic transformation strategies in a volatile environment, allowing companies to innovate and grow without the complexities of full acquisitions.
The US continues to be the primary destination for planned M&A activity, followed by Canada, the UK, India and Germany. Notably, 41% of CEO respondents pursuing M&A are targeting companies for their technology or intellectual property (IP), underscoring the critical role of technological innovation in today’s competitive landscape.
Deal appetite is high across most sectors, and particularly strong in Oil & Gas, Insurance and Health, which show the highest appetite for M&A over the next 12 months. Meanwhile, Media & Entertainment, Banking, Metals & Mining, and Technology are most likely to pursue joint ventures and strategic alliances.
CEOs are recalibrating their approach to transactions, focusing on strategic partnerships that allow for agility and shared risk. The current environment demands a shift in mindset, where collaboration becomes essential for navigating uncertainty and driving growth. As global CEOs adapt to the complexities of today’s business landscape, their focus on localization, strategic transactions to drive transformation, and technology investments positions them to thrive amid ongoing challenges.
About the survey
On behalf of the global EY organization, in August 2025, FT Longitude, the specialist research and content marketing division of the Financial Times Group, conducted an anonymous online survey of 1,200 CEOs from large companies around the world that aims to provide valuable insights on the main trends and developments impacting the world’s leading companies as well as business leaders’ expectations for future growth and long-term value creation.
Respondents represented 21 countries (Brazil, Canada, Mexico, the United States, Belgium, Luxembourg, the Netherlands, France, Germany, Italy, Denmark, Finland, Norway Sweden, the United Kingdom, Australia, China, India, Japan, Singapore and South Korea) and five industries (consumer and health; financial services; industrials and energy; infrastructure; technology, media and telecoms). Surveyed companies’ annual global revenues were as follows: less than US$500m (20%), US$500m–US$999.9m (21%), US$1b–US$4.9b (29%) and greater than US$5b (30%).