US CEOs look to JVs and business alliances for growth
With over USD1trn in US mergers and acquisitions announced last year, the US remains the strongest M&A market.
According to PwC’s 17th Annual CEO Survey, acquisition strategies are ripe for change as CEOs become comfortable with their positioning in the changing deals arena, indicating a continued uptick in deal flow throughout the year.
As a result, more US executives are planning to maintain and pursue new joint ventures and business alliances in 2014 as they seek new ways of collaboration to accelerate growth and to capture innovative and disruptive technologies even faster. As companies continue to seek new ways to accelerate growth through M&A, joint ventures and business alliances, the focus remains on increasing the success of the outcome to deliver on the potential value of the deal.
Additional key findings among US CEOs include:
· 57 per cent of US CEOs would like to or have plans to change M&A approaches as they look to reinvent capabilities across a number of functions
· 42 per cent of US CEOs plan to enter a strategic alliances this year while only four per cent expect they’ll exit and existing relationship
· 39 per cent of US CEOs plan to complete a domestic acquisition this year and 28 per cent are planning on a cross-border deal
· Attraction to alliances include access to new technologies, highly desired skills and exposure to diverse and innovative corporate cultures as much as lower cost structures and new market access
· In 2014, industry sectors most dependent on technology-driven convergence continue to be ripe for acquisition activity
· Appetites for acquisitions are most prevalent in North America, closely followed by Southeast Asia and Western Europe
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