EY says “the world is taking notice” of strong economic developments
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Global investors are keen to put their money into Canadian businesses according to a new survey.
EY asked a panel of over 2,500 executives in 43 countries about their confidence and their investment goals - 64% were CEOs, CFOs and other C-level executives.
The top 3 destinations for investment were the US, Brazil, and Canada.
“Canada is breaking records this year,” says Doug Jenkinson, a Partner in EY Canada’s Transaction Advisory Services practice. “The world is taking notice of recent positive economic developments and turning to Canada as the third top investment destination – the highest ranking we’ve seen since the survey began in 2009. It’s not just global sentiment that’s reaching a new high. The number of Canadian executives intending to pursue acquisitions continues to climb.”
More than three quarters of Canadian executives intend to actively pursue deals in the next 12 months as a key avenue for growth and a way to streamline businesses. This compares to 54% of US and 52% of global respondents who plan to do the same.
Most (86%) Canadian execs see the local economy improving and a similar share have confidence in the global economy improving (87%).
Headwinds remain due to trade concerns
Despite their overall optimism, Canadian business leaders remain concerned about protectionism and other trade issues.
Although earnings are not expected to be impacted with 66% forecasting stability, up from just 33% 6 months ago.
“Positive economic outlooks, tied with high appetite for transactions and the growing attractiveness of the Canadian market means competition for assets will intensify,” says Jenkinson. “In order to be competitive, executives will need to focus on their core areas for growth. Having the right due diligence measures in place will mean companies can execute plans quickly and at an accretive valuation.”
