An uncertain economy is not stopping Canadian CEOs from using mergers and acquisitions (M&As) as a key growth strategy, as their desire to expand into foreign markets increases.
The 15th annual Global CEO Survey, conducted by PwC, compared the views of 130 chief executives in Canada to their counterparts around the world.
It found Canadian CEOs are more bullish about the future, compared with their G7 and US counterparts.
A quarter of Canadian CEOs surveyed are planning to engage in M&As this year, compared with 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.
PwC’s Canadian deals leader, Kristian Knibutat, said, “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,” he added.
Other highlights from the Canadian participants in the survey are that:
• 73% are confident in their ability to finance growth;
• 71% of CEOs with operations in western Europe expect expansion in their operations in 2012, compared with just 36% of their global peers expressing the same sentiment; and
• 45% wish they could spend more time developing operations outside their home markets.
