TheCEOImperativeSeries

Howcanastrategic

transformationmindsetunlocklong-termvalue?

EY-ParthenonCEOOutlookSurveyJanuary2025

/CEOOutlook

parthenon

Contents

Broadervisionfortransformation

unlocksclearpathtolong-termvalue 4

2025settobeabigdealforM&A 9

EY-ParthenonCEOOutlookSurvey-January2025

EY-ParthenonCEOOutlookSurvey-January2025|1

CEOsarecommittedto

transformingtheirbusinessestogainfuturecompetitive

advantageamidheighteneduncertaintiesin2025.

Inbrief

?AslightriseinCEO

confidencesignals

cautiousoptimismfortransformationand

growthagendas.

?Dealappetiteishigh,asthemostconfidentCEOssee

M&Aasadrivingforceoftransformation–andtheyarereadytoact.

?Decodingdisruptionis

thekeytoaccelerating

sustainablegrowth,but

geopoliticaluncertainty

castsaconcerningshadow.

Intoday’sfast-changinglandscape,businessmodelinnovation

andtransformationarestrategicimperatives.Themostconfident

CEOsareadoptingadynamicmindsetviewingchangeasacore

capability.Theyunderstandtransformationisn’taone-timeinitiativebutanongoingreimaginationofbehaviorsandpotential,rootedin

continuouslearningandadaptation.

Marketleadersprioritizeholisticlong-termtransformationoverquickfixes.Successrequirespersistence,strategicvisionandinvestment

inoneofbusinesses’mostcriticalassets:people.Byre-skillingandnew-skillingemployees,leadersunlockthekeycompetitiveedgeofhumanpotential.

Adaptabilityistheultimateadvantage.Organizationsthatembraceatransformationalmindsetturndisruptionintoopportunity–

continuouslylearning,pivotingandgrowing,toshapetheirfuturewithconfidence.

CEOconfidencesteadilyincreasingacrossallaspectsoftheorganization

ThelatestGlobalCEOConfidenceIndexshowsamodestthree-pointincreasesinceSeptember2024,indicatingstrengtheningCEOsoptimismaboutthe

next12months.

September2024January2025

Overallconfidence

Globalgrowth Sectorgrowth Countrygrowth Companygrowth Pricesandinflation Talent Investmentandtechnology

70.5%

70.5%

71.5%

70.0%

71.0%

69.5%

70.0%

70.5%

73.5%

75.0%

76.0%

72.5%

74.0%

70.5%

73.0%

73.5%

CEOConfidenceIndex

SouthKorea

Geography

Brazil

Singapore

Mexico

France

Nordics

Australia

Benelux

Global

Germany

Canada

Italy

India

China

Japan

US

UK

Overallconfidence

Globalgrowth

Countrygrowth

Companygrowth

Pricesandinflation

Talent

Investmentandtechnology

51.5

54

59

67.5

70.5

71

73.573.5

7170.5

74

75

76

77.5

78.5

82

82.5

85.5

45.5

54.5

58.5

72

74

74

81

75.5

76

78.5

81

89

85.5

85.5

48.5

54.5

59.5

70.5

73

71.5

76

72.5

76.5

79

73.5

77.5

78.5

83.5

52

56

60.5

67

71.5

72.5

76

75

76.5

78.5

80

82.5

80.5

85.5

49

48.5

56

64.5

67

67.5

70

73

70.5

77.5

74

80

80

85

51.5

57

58

67

69.5

70

70.573

7373.5

73.5

75

75

75.5

76

82.5

84

85

52

54.5

60

66.5

69.5

72

75

75

76

77

80

80.5

81.5

85

7675

73.572.5

7574

73.5

73.5

74

75.5

68

74.5

73

NeutralOptimistic

Consumerproducts

Metalsandmining

Assetmanagement

Powerandutilities

Sector

Entertainment

Oilandgas

Manufacturing

Lifesciences

Realestate

Insurance

Technology

Mobility

Telecoms

Global

Banking

Retail

Health

61.5

66

68

70.5

71

71.5

71.5

7374

75

76

77

77

80.5

81

81

58.5

66.5

68.5

75

72.5

71

75.5

75

81

81.5

81.5

83

83

82

64

69

68

73.5

76.5

74

75.5

78

76

77.5

80.5

84

81

83.5

60.5

66

69

70.5

71.5

70.5

73

76

77

79

78

81

82

81.5

60.5

63

64.5

71

66.5

69.5

67

68.570.5

73.573

7173.1

71.5

73

74

73.5

79

79.5

79

62.5

65.5

68

67.5

69

72.5

70

75.5

75.5

76.5

75

79

80

79

61

65.5

70

69.5

71

71

72.5

74.5

78

77.5

78

80

81.5

82

Overallconfidence

Globalgrowth

Sectorgrowth

Companygrowth

Pricesandinflation

Talent

Investmentandtechnology

72.573.5

73.575

75.576

74.5

78.5

80

75

67

75

76.5

NeutralOptimistic

2|EY-ParthenonCEOOutlookSurvey-January2025

CEOconfidenceinfluenceshowCEOsapproach

transformation.

TheSeptember2024survey

highlightedthatthemostconfidentCEOscan

overcomeresistanceandembracetransformationwithstrongerprocessestomanageportfolioandstrategicinvestments.

OurlatestsurveyrevealsthattheconfidentCEOsarealsotakingalong-termapproachtotransformation,

focusingonenhancingcustomerandemployee

engagementamidmacroeconomic,geopoliticaland

technologicalshifts,todrivelong-termsustainable

valuecreation.Incontrast,thelessconfidentCEOsareconcentratingonshort-termimprovementsintopandbottom-lineperformance.

Globaleconomicforecastspredictthat

2025willhave

levelsofgrowthsimilarto2024’s

,withtheinflation

ratedeclinesseenin2024acrossmosteconomies

expectedtocontinue,albeitmoreslowly.However,theriskofglobalinflationspikesmaybegintotilttothe

upside,giventheprospectofincreasedprotectionism.

CEOconfidenceinsectorgrowthisdrivingmore

positivityaboutcompanyearnings.Companiesarefindingiteasiertomanagetheirtalentstrategy

givenrebalancedlabormarketconditions.Thereisalsoacontinuedfocusacrosstransformationlevers,includingtechnologyinvestment,andorganicand

portfoliotransformation.

TherearenotabledifferencesinCEOconfidenceat

thecountrylevel.InEurope,theUK,Italyandthe

Nordicsregion,scoreshaveimproved,whileFrance’shasdeclined.Thismayreflectpoliticalstabilityin

thesecountries.InNorthAmerica,theUSscore

increasedwhilebothMexico’sandCanada’sdeclined,potentiallyreflectingtheresultoftheUSelection.In

Asia,Singapore’sscoredeclined,potentiallyreflectingfearsthatanincreaseinglobaltradetensionscould

impactitsgrowth.However,Chinasawanincrease

reflectingthegovernment’sannouncementofsupportfortheeconomy.

Geopoliticalrisksareplayinganincreasinglyimportant

role

incorporatedecision-making.Oneverything

fromtradeandtarifftensions,industrialsovereigntyinitiatives,andtaxpolicy,tomoreseriousregional

warsanddisputes,CEOsarehavingtocarefullyconsidertheirglobalfootprint,supplychains,

ecosystempartnersandaddressablemarkets.

UnderstandingtheglobalgeopoliticallandscapeandemergingriskshasneverbeenhigherontheC-suiteagenda.

Afocusonshort-termfinancialmetricsmaypleasethestockmarket,butitdoesnotnecessarilydetermine

thelong-termsuccessoftransformationinitiatives.Takingalonger-termview,evenatthecostofshort-termfinancialmeasures,isamorereliablepathto

sustainablevaluecreation.

EY-ParthenonCEOOutlookSurvey-January2025|3

01

Broadervisionfortransformation

unlocksclearpathtolong-termvalue

ConfidentCEOsarebuildingdisruption-resilientandcustomer-centricbusinessmodelstobetterpositionthemselvesforthefuture.

Companiesviewcriticaltrendsanddisruptionsaseitherthreatstotheirexistenceoropportunities,andthis

differenceseparatesindustryleadersfromlaggards.

Today’sbusinesslandscapeisshapedbydisruptiveforces:rapidtechnologicaladvancements,includingartificialintelligence(AI),climatechange-driven

sustainabilityagendas,andgeopoliticaltensionsaffectingsupplychainsandglobaloperations.Digitalecosystemsexposenewthreatsandopportunities,whileremoteworkreshapesorganizations.Risingcybersecurityrisks,shiftingconsumerexpectations,economicvolatilityandcomplexregulationsdemandagility.Meanwhile,emergingmarketscreatenewcompetitivedynamicsand

growthpotential.

“

There’snoquestionwe’relivinginmoreuncertain

times.AndIthinkwhatwe’veseenisreallyaninjectionofstructuralvolatilityintotheenvironmentwithin

whichweoperatethatwe’regoingtolivewithprobablyforthenextdecade.So,forlargeglobalinstitutions,

infactforallcommercialorganizations,youhaveto

recognizethatuncertaintyandbeabletoreacttoit.So,whatdoorganizationsdo?Certainly,forus,it’saboutagility.Ifyou’regoingtobeagile,youneedtobeabletolookforward.

ColinBell

formerCEOofHSBCBankplcandHSBCEurope

Watchthefull

HSBCinterview

fromStrategyinAction:ACEOseriesbyEY-Parthenon.

4|EY-ParthenonCEOOutlookSurvey-January2025

Broadervisionfortransformationunlocksclearpathtolong-termvalue

EY-ParthenonCEOOutlookSurvey-January2025|5

ThemostconfidentCEOsviewalltrendsasadrivingforcetotransformtheirbusinesses.

Question:Howimportantisitto

Growingmacroeconomicandpolicyuncertainty

rethinkyourorganization’sapproachtotransformationtoadapttothe

followingtrends?

Increasinginterconnectednessandunexpectedknock-onimpactsofexternalshocks

Increasingspeedandscaleoftechdisruptionandadoption

GrowingcostofdigitaltransformationandincreasingpressuretodemonstrateROI

Increasingpricingpressuresandconstrainedabilitytopasscostsontocustomers

Talentandcapabilitygapswithrespecttoemergingtechnologies

Note:Therespondentswereaskedtoselectoneoptionforeachstatement.

LeastconfidentMostconfident

54%

56%

60%

57%

57%

52%

50%

60%

Increasinggeopoliticalvolatility

Increasingstakeholderandregulatorypressurewithrespecttosustainability

90%

92%

92%

93%

91%

94%

91%

93%

CEOs’responseshighlightthecriticalimpactoftrendsdrivingtransformationinthistimeofelevateduncertainty.ThetopquartileofconfidentCEOsaretwiceaslikelytoseealltrendsascriticaltoreshapingtransformation.Effectively

recalibratingtheirriskradartoincludeallpotentialheadwindsrevealsthepathforward,althoughfixatingonexistingriskscanleadtoparalysis.

46%

44%

46%

44%

Broadervisionfortransformationunlocksclearpathtolong-termvalue

6|EY-ParthenonCEOOutlookSurvey-January2025

CEOsprioritizeelevatingthecustomerandemployeeexperiencestobringsustainablebusinessgrowth.

CEOsprioritizeenhancing

customerandemployee

engagementandretention,whilealsooptimizingoperations,as

themostimportantoutcomesofthetransformation.

Question:Whatarethemostimportant

outcomesthatyourtransformation

initiativesaretryingtoachieveinthenext12months?

Note:Therespondentswereaskedtoselectuptothreeresponsesandranktheminorderofpriority.

GlobalAmericasAsia-PacificEurope

47%

47%

45%

Improvingcustomer

engagementandretention

47%

38%

Improvingemployee

engagementandretention

41%39%39%

Optimizingoperationsandimprovingproductivity,

includingdigitization

Acceleratingtop-linegrowth37%36%41%38%

Enhancingproductand

37%

35%

40%

39%

processinnovationtoimprovecurrentofferingsandcreate

newproductsandservices

33%

33%

31%

33%

Achievingsustainabilitytargets

Reducingcostsandunlockingsavings

·31%32%30%·31%

Radicallyreimaginingyour

businessmodelforthe

futuretounlocknewways29%30%24%32%ofcreating,deliveringand

capturingvalue

60%

ofthemostconfidentCEOsprioritizecustomerand

employeeexperience.

Only30%

oftheleastconfident

executivesintendtofocusonthesameoutcome.

CEOsshowapreferenceforimprovingcustomerandemployeeengagement

andretention,whileoptimizingoperationsandenhancingproductivity.Putting

humansatthecenter

ofthetransformationcanenhanceproductivitygainsbyafactorof2.6.

ThemostconfidentCEOsarelikelytoaimforbetteremployeeandcustomer

experiencesthroughtransformation(60%,vs.30%oftheleastconfidentCEOs)whileapluralityoftheleastconfidentCEOsfocusonimprovingtop-linegrowthandmarginexpansion(40%,vs.20%ofthemostconfidentCEOs).

Thisstarkcontrastmayreflectadivergenceinambitionhorizons.Top-line

growthandmarginexpansionmaybeunsustainableshort-termindicators.

Improvingcustomerandemployeeengagementismorelikelytocreateastrongerfoundationforlonger-termsustainablegrowth.

Broadervisionfortransformationunlocksclearpathtolong-termvalue

EY-ParthenonCEOOutlookSurvey-January2025|7

“

Thebalanceoninvestingbetweenshort-termandlong-termcanbetricky.Iwouldsaywetakealong-termviewonallourdecisions,whichsometimesmeanstakinga

short-termviewonsomedecisions.ThingslikeESG,

sustainability,Ibelievetheseareareaswhereyou’re

nevergoingtoreachyourdestination.It’ssomethingthatwecanalwaysbeimprovingupon.

ZakBrown

CEOofMcLarenRacing

Watchthefull

McLarenRacinginterview

fromStrategyinAction:ACEOseriesbyEY-Parthenon.

Intoday’shypercompetitivemarketlandscape,

customerengagementhas

emergedasacriticaldifferentiator

forsustainablebusinessgrowth.By

cultivatingmeaningfulpersonalizedinteractionsthattranscendthetransactionalrelationships,companiescanunlocksubstantiallong-termvalue.

Strategicengagementinitiativesthatleveragedata-driveninsights,omnichannelcommunicationandresponsivecustomerexperiencedesignenablecompanies

tonotonlyretainexistingrelationshipsbuttransformloyalcustomersintobrandadvocates.

Moreover,companiesthatprioritizegenuinevalue-addedengagementarebetterpositionedtoadapttoevolvingmarketdynamicsandbuildresilientcustomer-

centricbusinessmodelsthatgenerateconsistentcompetitiveadvantage.

Similarly,innavigatingtransformation,employeesrepresentthecriticalcatalystforsustainablechange.Successfultransformationprogramsfundamentally

dependonworkforcealignment,engagement,andpsychologicalsafetytodrivemeaningfulstrategicshifts.

“

Criticaltoasuccessfulstrategyishavingtheright

resourcing,therightskillsets,therightteam,and

ensuringthatthemanagementteamreallyunderstandsandisincompleteaccordonthestrategicopportunitythatisthere.Andthenhavingthedisciplinetotake

multiplecheckpointsalongthewaysothatthestrategybecomesarealityaspertheplanor,asismuchmoreoftenthecase,talkingandchangingthestrategyas

additionalinformationcomesthrough.

AnnaDunn

CEOofJ.P.MorganSecuritiesplc.,andCFOofJPMorganChaseinEMEA

Broadervisionfortransformationunlocksclearpathtolong-termvalue

8|EY-ParthenonCEOOutlookSurvey-January2025

Byempoweringemployeesasactivechangeagentsratherthanpassive

recipients,companiescanunlockintrinsicmotivation,reduceresistance

andacceleratetransformation.Effectivechangemanagementnecessitates

transparentcommunication,robustskilldevelopment,andcreatingaculturethatvaluesinnovationandadaptability.Whenemployeesfeelgenuinelyinvestedin

thetransformationjourney,theybecometheprimaryarchitectsoforganizationalreimagination,translatingstrategicvisionintooperationalexcellence.

CEOsseemverybullish

abouttheirabilitytoachieve

transformationaloutcomes

despiteheighteneduncertainties.

Question:Howconfidentareyouinyourtransformationinitiatives’abilityto

achievetheoutcomesyouhaveidentifiedasmostimportant?

Note:Therespondentswereaskedtoratetheirconfidencelevelsinthetopthreetransformationoutcomestheyhadidentified.

Between1%—4%answered“Notconfidentenough”

Veryconfident:

Iamconvincedwewillmeetallourgoalsandtargets

Moderatelyconfident:

wewillmakesignificantprogressbutnotfullyachieveallourgoals

Improvingcustomer70%29%

engagementandretention

69%30%

Improvingemployee

engagementandretention

Optimizingoperationsand

improvingproductivity,61%37%includingdigitization

Acceleratingtop-linegrowth59%38%

Enhancingproductand

processinnovationtoimprove

currentofferingsandcreate65%34%newproductsandservices

Achievingsustainabilitytargets64%32%

56%41%

Reducingcostsand

unlockingsavings

Radicallyreimaginingyour

57%41%

businessmodelforthefuture

tounlocknewwaysofcreatingdeliveringandcapturingvalue

WherewedoseetheoutlookofthemostandleastconfidentCEOsconvergingistheirbeliefinachievingtheirmostimportanttargetedtransformationambitions.However,onlyalittleoverhalfofCEOs(57%)areveryconfidenttheycan

reimaginetheirbusinessmodelforthefuture.Theabilitytogetthisrightwillincreasinglydefineleadersandlaggards.

Businessmodelinnovation

,theprocessofidentifying,developingand

commercializingnewbusinessmodelstoretaincompetitiveadvantage,aswellastransformation,willbeadefiningcharacteristicofsuccessfulcompaniesastheynavigateanincreasinglycomplexenvironment.

EY-ParthenonCEOOutlookSurvey-January2025|9

02

2025settobeabigdealforM&A

MostconfidentCEOsrecognizetheimportanceofdealsintheirtransformationjourney.

70%

ofthemostconfidentCEOsareplanningtoleveragedeals.

Only17%

oftheleastconfident

executivesanticipatethesametransactionstrategy.

ThemostconfidentCEOsunderstandthattransformationisbothorganic

andinorganic.Theyaimtogainanedgebyleveragingdealsasacatalystfortransformation.Theyaresignificantlymorefocusedonpursuingmergers

andacquisitions(M&A)inthenext12monthsthantheleastconfidentCEOs(70%vs.17%).

TheoverallappetiteforM&Ainthenextyearhasincreasedsignificantly,to56%from37%inSeptember2024,whichshouldsignalarobustreboundfordealsin2025.

Thatwouldbeacontinuationofupwardtrendsin2024inwhichM&Aactivity

wasresilientdespitecomplexmarketconditions.Valuationshavestabilized

after2023’scorrections,andprivateequityfirmsaredeployingtheircapital.

Technologyacquisitionsaredrivinginnovation,whilecompaniesacrosssectorshavepursuedstrategicscaleamideconomicuncertainty.

TherationaleforM&Aisstrong.Digitaltransformationremainsacriticaldriverofdealstrategies,withAIcapabilitiesincreasinglydrivingcorporateacquisitionstrategies.Atthesametime,defensiveconsolidationhelpscompaniesbuild

operationalandcompetitiveresilience.Costsynergiesbecomemorecompellinginchallengingeconomicenvironments.Activistinvestorscontinuepushing

forstrategicportfoliooptimization,andlowerinterestrateshaveimprovedM&Afinancing.

2025settobeabigdealforM&A

10|EY-ParthenonCEOOutlookSurvey-January2025

However,2024wasnotaboomyearforM&A–moreareturntonormal.Globally,dealvaluesgrewby14%andvolumeby8%,inlinewithpre-pandemiclevels.

Dealdynamicsarenormalizing,

leadingtoagrowingdesireamongcorporatestotransformtheir

portfoliosthroughM&A.

Note:GlobalM&Adealsizeandvolumebetween

2015and2024.

US$m

US$m

Volume*

Volume*

$6M

$5M

$4M

$3M

$2M

$1M

0

0708091112131416171819212223

2010201520202024

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

Mergersand

acquisitions(M&A)

M&Aappetitelevelshavesurgedsignificantly,risingto56%from37%quarteroverquarter.This

demonstratesthatleadersare

Divestments,spin-offsor

initialpublicofferings(IPOs)

focusednotjustonstability,butalsoongrowth.

Question:Doyouexpecttoactivelypursueanyofthefollowingtransactioninitiativesoverthenext12months?

Jointventuresorstrategicallianceswiththirdparties

Note:Therespondentswereaskedtoselectmultipleresponses.

Source:EYanalysisandDealogic;*VolumebasedondealsUS$100mplus

Therewerepocketsofelevatedactivityacrossgeographies.TheUSremainedthestandoutmarket,accountingfornearlyhalfofalldeals.TheUKalsosawastrongrebound,asdidJapan,Germany,CanadaandFrance.Conversely,ChinaandIndiasawdeclinesindealactivity,loweringtheAsia-Pacificnumbers.

GlobalAmericasAsia-PacificEurope

56%

55%

53%

54%

61%

48%

39%

62%

62%

64%

51%

60%

Noneoftheabove

4%5%3%4%

Theelevatedappetiteforpursuingacquisitionsoverthenext12monthsintheAmericasandEuropeistoppedbyanevenstrongerappetiteinAsia-Pacific.

ThiscouldhelprebalancetheglobaldeallandscapeandfurtheraccelerateM&Ain2025.

2025settobeabigdealforM&A

EY-ParthenonCEOOutlookSurvey-January2025|11

Improvingproductandprocessinnovation

Improvingproductandprocessinnovationisseenasacriticalconsiderationwhenevaluatinganacquisition.

Improvingcustomer

engagementandretention

Question:Whatoutcomesaremostimportanttoyouwhenevaluatingapotentialacquisition?

Improvingemployee

engagementandretention

Optimizingoperationsandimprovingproductivity

Radicallyredefiningyour

businessmodelforthefuture

Note:Therespondentswereaskedtoranktheirtopthreeoutcomes.

Therewasalsoanotabledevelopmentin2024ofcompaniesdivestingnon-

coreassetstostreamlinetheiroperationsandfocusontheirprimaryareasofexpertise,ascompanieslookedtosimplifytheirbusinessmodels,sharpentheirstrategicfocusandpotentiallyunlockgreatervalueforshareholders.Witha

heavierinvolvementexpectedin2025fromPEinvestors–whowillbekeentoacquirehigh-qualitydivestedassets–thiscouldbeanotherstrongaccelerant.

GlobalAmericasAsia-PacificEurope

53%

52%

48%

47%

51%

44%

41%

44%

46%

38%

36%

41%

41%

41%

34%

39%

Acceleratingtop-linegrowth36%34%37%37%

Achievingsustainability

targets

32%32%27%37%

31%

30%

26%

32%

Reducingcostsandunlockingsavings

29%

28%

28%

30%

CEOsarelookingtouseM&Atogetaheadofthecompetitionandimprovetheirproductandprocessinnovation.ButtheyarealsousingM&Abymirroring

theiroveralltransformationobjectivesofimprovingcustomerandemployeeengagementandretention.

Globalinvestmenthotspotsfor2025–opportunitiesandrisks

ThefivemostattractiveinvestmentdestinationsgloballyremainthesameasinSeptember,albeitwithareorderingofpreference.

Top5capitalinvestmentdestinationsoverthenext12months

Kingdom

3Germany

1

TheUnited2Canada5 TheUnited

States

4

Mexico

Mexico:Mexico’scompetitivelaborcosts,strategic

geographicproximitytoUSmarkets,emerging

manufacturingcapabilities,progressivetradeagreementsandincreasinglyskilledworkforcepresentattractivenear-shoreinvestmentopportunitiesforglobalcorporations.

ButbeingtheUS’lower-costneighborisalsoarisk.The

newUSadministrationmaybelessforgivingofcompaniesthatlooktousethatadvantagetocompeteagainstUS-

basedentities,andnewtariffscouldbeanimmediate

policymeasure,whichwouldimpacttheattractivenessofinvestinginMexico.

1

4

TheUnitedStates:TheUShasarobustmarket-driven

economywithunparalleledinnovationecosystems,deep

capitalmarkets,leadershipintechnologydevelopment,

anddiverseindustryclustersofferingextensivestrategic

opportunitiesforcross-bordermergersandtransformativedirectinvestments.However,ifthenewadministration

implementspoliciesthatcreateuncertaintyitcould

undermineconfidenceandderailthestrongM&Amarket

involvingUSassetsandcompanies.ThestrongproductivitygainsseenintheUSwillalsomakeinbounddealsmore

attractive,butanymonetarypolicyuncertaintycoulddragdownactivity.

5

TheUnitedKingdom:TheUK’sdynamicfinancial

2

servicessector,entrepreneurialbusinessculture,flexible

regulatoryenvironment,highlyeducatedworkforceand

globalconnectivityaresignificantstrategicadvantages

forattractinginternationalcorporateexpansionand

investmentinitiatives.But,whiletheUKispoliticallystablecomparedwithitspeers,itstillmustdecideonthefuture

ofitsmostimportanttradingrelationships.Recalibrating

itsrelationshipscouldbebothaheadwindandtailwindfortradeandinvestment,astheUKalsolookstodeepentradeandinvestmentwiththeUSandAsia.

Canada:Canadahasastableregulatoryenvironment,

sophisticatedtalentpool,advancedtechnology

infrastructure,predictablelegalframeworksandstrategicNorthAmericanpositioning,offeringacompellingvalue

propositionformultinationalcorporateinvestment

strategies.However,investorscouldquicklyshyawayfromCanadaifthereisaprolongedperiodoftradetensions

withtheUS.Elevatedpoliticaluncertaintycouldalsocurtailinvestment.

3

Germany:Germany’sengineeringexcellence,world-

classmanufacturingcapabilities,sophisticatedindustrial

infrastructure,strongexportorientationandcutting-edgetechnologyresearchmakeitapremierdestinationfor

strategicindustrialandtechnologyinvestments.Butthe

countryisexperiencingpoliticalturmoilasitlookstoresetitslong-standingeconomicmodel.TheneedforM&Aand

combinationsinitsMittelstandheartlandhasneverbeen

higher.Thequestioniswhetherthereisenoughconfidenceinthecurrentenvironmenttoseethishappen.

12|EY-ParthenonCEOOutlookSurvey-January2025

Broadervisionfortransformationunlocksclearpathtolong-termvalue

Tosucceedintoday’sdisruptedenvironment,CEOsneedtoadoptandactivatefivewaysofthinkingandbehaving:

Adoptatransformationmindset

LeadingCEOsareembracingchangeasacorecapability,fosteringamindsetthatviewstransformationas

continuouslearningandadaptation.Theyshould

encourageacultureofag