TORONTO Mergers and acquisitions are a key growth strategy for Canadian CEOs, according to PwC’s 15th Annual Global CEO Survey.
Canadian CEOs are more bullish than their G7 and US counterparts, with 25 per cent planning a merger or acquisition, compared to the global average of 12 per cent.
They also indicated a stronger appetite for joint ventures and/or strategic alliances than their G7 peers.
“During 2011 we saw how Canadians stepped outside their comfort zone and onto the global scene. Our CEOs were active in 10 per cent of the total global M&A market last year, up from 7 per cent at the 2007 market peak,” says Canadian Deals Leader Kristian Knibutat.
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 2012, compared to 36% of their global peers
- 45% wish they could spend more time developing operations outside their home markets.
Knibutat says a number of examples point to a transformation in Canadian deal making.
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.
However, concern about the macroeconomic environment is palpable, with only 13 per cent of Canadian CEOs expressing optimism on global prospects.