Allocating capital in a connected way enhances value
Executives cite investing in existing operations and transformational investment in digital and technology as their top capital allocation priorities. The focus on their own ecosystem through a variety of lenses (digital, geopolitical, economic and demographic) should enable executives to pivot quickly as markets evolve.
Taken together with the intention to restructure their existing businesses through a combination of acquisitions and divestments, executives are signaling a period of active portfolio reshaping to accelerate growth.
Executives have a very balanced outlook on decisions to improve capital structure, make acquisitions and return capital to shareholders.
Businesses should embrace a robust and structured approach to capital allocation that will better position them to capture value in the current disruption-led environment. They need to develop the flexibility to quickly assess new and emerging investment opportunities.