KPMG Survey Reveals CEOs See Financial Drivers for M&A

Article

Pharmaceutical Executive

KPMG, a professional services firm providing business solutions and audit, tax, and advisory services, released its CEO Outlook survey results. The survey found that low interest rates and high stock valuations are fueling U.S. life sciences CEOs’ growing appetite for mergers and acquisitions.

Some key takeaways from the survey include:

  • 43% of U.S. life sciences CEOs say they have a “high appetite” for M&A, an increase from 33% a year ago.

  • 58% of U.S. CEOs said using cheap financing, such as low interest rates before they rise, are a primary driver of deals during the next three years.

  • 48% of those in the U.S. pointed to favorable stock valuations as a motivator for deals.

  • 44% of life sciences CEOs globally found that business-model transformation was the leading driver of M&A, followed by improving market share and also capitalizing on low interest rates (both 39%).

  • Cost cutting was seen as a motivator equally among global and U.S. CEOs (39%). 

To view the full survey, visit here.

 

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