TORONTO, Feb. 24, 2012 /CNW/ - A slower economy is not stopping Canadian
CEOs from using mergers and acquisitions as a key growth strategy, as
their desire to expand into foreign markets grows. This is according to
the 15th Annual Global CEO Survey conducted by PwC, which compared the
views of 130 chief executives in Canada to their counterparts around
the world. The findings are featured in PwC's Capital Markets Flash
Canadian CEOs are more bullish on the future, compared with their G7 and
US counterparts. One quarter of Canadian CEOs surveyed are planning to
engage in M&A, compared to the global average of just 12%. Canadian
CEOs also have a stronger appetite for joint ventures and/or strategic
alliances than their developed world peers.
"During 2011 we saw how Canadians stepped outside their comfort zone and
onto the global stage. Canadian CEOs are not in a 'wait and see'
mode—they are planning for more expansion outside of this country in
2012. Our CEOs were active in 10% of the total global M&A market last
year, up from 7% at the 2007 market peak," says Canadian Deals Leader
Some highlights from the Canadian participants in the survey include:
73% are confident in their ability to finance growth
71% of CEOs with operations in Western Europe expect growth in their
operations in 2012, compared to just 36% of their global peers
expressing the same sentiment.
45% wish they could spend more time developing operations outside their
Knibutat says there are a number of examples which point to a
transformation in deal making in Canada. Last year was the first time
in history that the value of Canadian acquisitions into the US outpaced
the value of US-lead deals in Canada.
The survey also finds that Canadian CEOs are still concerned about the
global macroeconomic environment, with only 13% expressing optimism
about the prospects for a global economic rebound. The threats of
continued equity market and foreign exchange rate volatility and
protectionism, in particular, were top of mind.
A key finding is that a majority of Canadian chief executives (66%)
anticipate that their companies will change strategic course in 2012.
"We believe this is likely a reaction to concerns that CEOs have over a
challenging global economy and an acceptance of slower domestic
growth," says Knibutat.
For PwC's 15th Annual Global CEO Survey, 1,258 interviews were conducted
in 60 countries in the last quarter of 2011. In Canada, 130 CEOs were
surveyed. 291 interviews were conducted in Western Europe, 440 in Asia
Pacific, 150 in Latin America, 236 in North America, 88 in Central and
Eastern Europe, and 53 in the Middle East & Africa.
The full survey report with supporting graphics can be downloaded at www.pwc.com/ca/ceosurvey. Follow the discussion on Twitter with #ceo_survey. Copies are also available from the media contacts.
About PwC's Deal Team
PwC's Deal Team (www.pwc.com/ca/deals) helps clients to achieve deal success—from concept to close and
beyond. As part of the world's largest Transaction Advisory practice1, the PwC Canada Deals Team is your gateway to an exciting new world of
emerging M&A opportunities.
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada.
About PwC Canada
PwC Canada helps organizations and individuals create the value they're
looking for. More than 5,700 partners and staff in offices across the
country are committed to delivering quality in assurance, tax,
consulting and deals services. PwC Canada is a member of the PwC
network of firms with close to 169,000 people in 158 countries. Find
out more by visiting us at www.pwc.com/ca.
© 2012 PricewaterhouseCoopers LLP, an Ontario limited liability
partnership. All rights reserved.
PwC refers to the Canadian member firm, and may sometimes refer to the
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1 Source: Kennedy;"Business Advisory Services Marketplace 2009-2011" ©BNA
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