EY’s Global Capital Confidence Barometer
While the COVID-19 pandemic has created new and unforeseen challenges, business executives are looking forward to a reset economic, geopolitical and social environment, according to the results from EY’s 23rd Global Capital Confidence Barometer.
“Leaders predict returning to pre-pandemic levels of profitability this year [23%] or in 2022 [44%], and are seeking regions for growth, with Europe showing the most potential for generating new opportunities [39%], followed by Asia-Pacific [30%] and the Americas [24%].
Keiran Hutchison, EY Partner and Strategy and Transactions Leader for the EY Region of the Bahamas, Bermuda, British Virgin Islands and Cayman Islands, shared, “The COVID-19 outbreak shook our communities and businesses to their core. While risks and uncertainty still remain, it’s promising that the C-suite has a more optimistic view of the year ahead and is acting proactively and strategically to reframe their future.”
The company said, “Following unprecedented disruption in 2020, leaders will revamp their mergers and acquisitions [M&A] and investment strategies to ensure growth. Nearly half [49%] plan to acquire assets in the next 12 months and 65% plan to acquire cross-border targets.
“The driving factor for investment plans remains mitigating the long-term impact of the pandemic-induced economic slowdown, with 63% increasing investments in technology and digital capabilities, while 57% will boost investment in customer engagement.
“Cautious optimism does exist with leaders predict returning to pre-pandemic levels of profitability this year [23%] or in 2022 [44%], and are seeking regions for growth, with Europe showing the most potential for generating new opportunities [39%], followed by Asia-Pacific [30%] and the Americas [24%].”
Keiran Hutchison further noted, “Notwithstanding the challenges of the last year, the financial services jurisdictions in the region have all continued to see opportunities in global financial services and whilst the next 12 months will almost certainly see restructuring and capital recycling in the local leisure and hospitality sector, we expect that the mobility of global capital will bring new players and opportunities to all our regional jurisdictions.”
Steven Napier, Associate Partner at EY Bermuda Ltd. and Regional Valuations, Modeling and Economics Leader said, “Investing in innovation and digital technologies continues to be a cornerstone of business’ growth strategies. Executives realize that acquiring technology and innovative startups is a key driver for valuable acquisitions.”
Learn more about the survey here.
