With M&A helping to fuel growth plans, more than half (55%) of French executives say that their companies will be able to achieve growth of 11% or higher in the coming year. However, although M&A features prominently in strategy growth plans, 72% say that organic growth will remain the main growth driver.
Competing allocation priorities and activist shareholders have French companies reshaping their portfolios
French executives cite a number of competing capital allocation priorities, including returning capital to shareholders, improving capital structure and transformational investment in digital and technology. This focus on their own ecosystem through a variety of lenses (digital, geopolitical, economic and demographic) should help French executives to pivot as markets evolve.
Meanwhile, almost all French executives (97%) say that activist shareholders are placing increasing pressure on their companies to reshape their portfolios. For 40%, the priority is on reconfiguring operations or expanding their geographic footprint, while 60% are being pushed to either acquire or divest.