The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook, and identifies boardroom trends and practices in the way companies manage their Capital Agendas — EY framework for strategically managing capital. It is a regular survey of senior executives from large companies around the world, conducted by Thought Leadership Consulting, a Euromoney Institutional Investor company. Our panel comprises select global EY clients and contacts and regular Thought Leadership Consulting contributors.

1. The better the question. The better the answer.
The better the world works.
How can you reshape
your future before it
reshapes you?
Companies look to safeguard growth by reinventing
their M&A strategy beyond tomorrow.
Global Capital Confidence Barometer
April 2019 | 20th edition

2. “The boardroom of 2019 is
concentrating on proactively
managing risks and seizing
the upside opportunities of
disruption.
Steve Krouskos
EY Global Vice Chair,
Transaction Advisory Services
Global Capital Confidence Barometer
April 2019 | 20th edition
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3. Macroeconomic environment and risks to growth
Despite concerns of a slowing economy as a primary threat to growth plans, companies
remain optimistic about their own performance and growth potential.
93% 76% 33%
0%–5% 6%–10% 11%-15% 16%–25% 26%–50% More than 50%
11% 34% 42% 11% 1% 1%
What revenue growth rates do you expect your company to achieve in the coming year?
of executives see the global
economy as improving
of companies expect revenue
growth of 6%-15% in the
next year
of executives acknowledge a
slowing economy as the
primary risk to their business
Global Capital Confidence Barometer
April 2019 | 20th edition
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4. Portfolio reshaping and long-term value creation
Companies are building resilience into their operations and are instilling financial discipline
while realigning portfolios to future-proof growth.
Less frequently
than annually
Annually Every six months Every quarter Continuously
Apr 18 Oct 18 Apr 19
2% 1% 1% 64% 27% 3%33% 40% 22% 4%22% 31% 41% 5%4%
How frequently are you reviewing your portfolio?
of executives say they are
compelled by activist pressure to
continually assess and reshape
their portfolios
of executives expect to
review their portfolio on
a quarterly basis – almost
doubled from six months ago
of executives are focused
on reducing costs to
free up investment capital
83% 41% 66%
Global Capital Confidence Barometer
April 2019 | 20th edition
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5. M&A outlook and major themes
Executives are more bullish in their outlook and are building resilience into their operations,
while at the same time looking for future growth and transformation through M&A.
of companies expect the M&A
market to improve in the
next 12 months
of executives expect to actively
pursue acquisitions in the next
year – a 10-year high
of executives aim to enter
new markets, customers
and intellectual property (IP)
Trailing 12-month global M&A value Capital Confidence Barometer intention to pursue acquisitions
Source: EY analysis and Dealogic
2013 2014 2015 2016 2017 2018 2019
29%
31%
56%
50%
56%
52%
59%Do you expect your company
to actively pursue M&A in the
next 12 months?
92% 59% 59%
Global Capital Confidence Barometer
April 2019 | 20th edition
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6. Despite economic and geopolitical concerns, Europe emerges as the top
cross-border destination
*Respondents were polled on their top three investment destinations; this chart reflects the cumulative
preference for each region.
Primary preferred destination outside
their domestic market/immediate region*
Outside domestic market/
immediate region
Immediate region
(countries close to home)
Domestic market
(home country)
North
America
Latin
America
Western
Europe
Eastern
Europe
Asia
Africa
and
Middle
East
Where is your organization’s main focus for doing M&A in the next 12 months?
Global Capital Confidence Barometer
April 2019 | 20th edition
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7. Top investment destinations and their key characteristics
Despite continued uncertainty stemming from its intention to leave the European Union (EU), the UK climbs to the No. 1
spot in the top investment destinations for the first time in the survey’s 10-year history.
In addition, China climbs back into the top five, even as concerns about market access and reciprocity with the US and EU
continue. And despite fears over protectionism, the US is a top destination of choice for 9 of the 10 most active cross-
border investors, including China.
Top 5 investment destinations Top investors Top destinations Top sectors
1 United Kingdom
1. US
2. UK
3. Germany
1. UK
2. US
3. Germany
1. Consumer products and retail
2. Industrials
3. Financial services
2 United States
1. US
2. Canada
3. Mexico
1. US
2. UK
3. China
1. Oil and gas
2. Industrials
3. Life sciences
4 China
1. China
2. US
3. Japan
1. China
2. US
3. Germany
1. Financial services
2. Automotive and transportation
3. Consumer products and retail
5 France
1. France
2. Germany
3. US
1. UK
2. France
3. Germany
1. Automotive and transportation
2. Power and utilities
3. Financial services
3 Germany
1. Germany
2. US
3. France
1. UK
2. Germany
3. US
1. Media and entertainment
2. Power and utilities
3. Financial services
Global Capital Confidence Barometer
April 2019 | 20th edition
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8. Critical questions executives should ask themselves to drive better M&A
in today’s deal economy
1
Can you reshape your portfolio quicker than your
industry reshapes around you?
Executives should determine the relationship between their
ecosystem and an evolving industry landscape to better
position themselves for emerging growth opportunities.
2
Is the missing link in your data your own?
Companies should use their own internal data and a range
of differentiated external information to highlight potential
growth markets rather than assume headline economic
activity is a reliable guide.
3
Tariffs, trade or business as usual?
Executives should factor in changing trade patterns, but not
allow them to significantly alter strategic direction.
4
Do you need to look in a different direction to see
more clearly?
Companies should take both inside-out and outside-in views to
understand how investors and others
perceive them.
5
Developed, emerging or your own unique
market?
With technology enabling an increasingly bespoke
service, executives should strive to have resources laser
focused on attracting and retaining customers.
6 Will automation alleviate margin compression?
With input prices rising, executives should accelerate their
automation journey to reduce costs and maintain
earnings growth.
7 Are you creating your own liquidity trap?
Executives should challenge the status quo and constantly
stress-test their treasury and working capital processes to
maximize liquidity and free up capital for reinvestments.
8 Do you know the next big thing in your industry?
With traditional sectors recast, executives should build
information and intelligence sources to continually track
emerging competitors and technologies that may undermine
their business models.
9 How can you bridge the gap?
With traditional valuation models not always able to fully
assess new business models and technologies, executives
should utilize more advanced modeling techniques and
model a wider range of scenarios for key input assumptions.
10 Can you articulate your social value?
With societal issues elevating risks for businesses,
executives should be able to articulate a compelling
narrative of how their purpose goes beyond profit and
how their M&A fulfills purpose.
Global Capital Confidence Barometer
April 2019 | 20th edition
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9. What we do - introducing Connected Capital Solutions
Enabling fast-track
growth and portfolio
strategies that help you
realize your full
potential for a
better future
Enabling strategic
growth through better
integrated and
operationalized
acquisitions, joint
ventures and alliances
Enabling strategic
portfolio management
and better divestments
that help you improve
value from a sale of an
entire company,
carve-out, spin off or
joint venture
Supporting better
decisions around
financing and funding
capital expansion and
optimizing capital
efficiency
Helping you transform
or restructure your
organization for a
better future by
enabling business-
critical and capital
investment decisions
Whether you’re preserving, optimizing, raising or investing, our Connected Capital
Solutions can help you drive competitive advantage and increased returns through
improved decisions across all aspects of your Capital Agenda.
Explore Transaction Advisory Services.
Visit www.ey.com/transactions
Global Capital Confidence Barometer
April 2019 | 20th edition
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10. About the survey
The Global Capital Confidence Barometer
gauges corporate confidence in the economic
outlook, and identifies boardroom trends and
practices in the way companies manage their
Capital Agendas — EY framework for
strategically managing capital. It is a regular
survey of senior executives from large
companies around the world, conducted by
Thought Leadership Consulting, a Euromoney
Institutional Investor company. Our panel
comprises select global EY clients and contacts
and regular Thought Leadership Consulting
contributors.
► In February and March, we surveyed a panel
of more than 2,900 executives in 47
countries; 68% were CEOs, CFOs and other
C-level executives.
► Respondents represented 14 sectors,
including financial services, consumer
products and retail, technology, life sciences,
automotive and transportation, oil and gas,
power and utilities, mining and metals,
advanced manufacturing, and real estate,
hospitality and construction.
► Surveyed companies’ annual global revenues
were as follows: less than US$500m (25%);
US$500m–US$999.9m (24%); US$1b–
US$2.9b (21%); US$3b–US$4.9b (9%); and
greater than US$5b (21%).
► Global company ownership was as follows:
publicly listed (54%), privately owned (40%),
family owned (4%) and government or state
owned (2%).
Contacts
EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction
and advisory services. The insights and quality
services we deliver help build trust and confidence
in the capital markets and in economies the world
over. We develop outstanding leaders who team to
deliver on our promises to all of our stakeholders.
In so doing, we play a critical role in building a
better working world for our people, for our clients
and for our communities.
EY refers to the global organization, and may refer
to one or more, of the member firms of Ernst &
Young Global Limited, each of which is a separate
legal entity. Ernst & Young Global Limited, a UK
company limited by guarantee, does not provide
services to clients. Information about how EY
collects and uses personal data and a description
of the rights individuals have under data protection
legislation is available via ey.com/privacy. For
more information about our organization, please
visit ey.com.
About EY’s Transaction Advisory Services
How you manage your capital agenda today will
define your competitive position tomorrow. We
work with clients to create social and economic
value by helping them make better, more informed
decisions about strategically managing capital and
transactions in fast-changing markets. Whether
you’re preserving, optimizing, raising or investing
capital, EY’s Transaction Advisory Services
combine a set of skills, insight and experience to
deliver focused advice. We can help you drive
competitive advantage and increased returns
through improved decisions across all aspects of
your capital agenda.
© 2019 EYGM Limited.
All Rights Reserved.
EYG no. 001672-19Gbl
1901-3043022
ED None
This material has been prepared for general
informational purposes only and is not intended to
be relied upon as accounting, tax or other
professional advice. Please refer to your advisors
for specific advice.
ey.com/ccb
For a conversation about your capital
strategy, please contact us:
Global
Steve Krouskos, EY Global Vice Chair,
Transaction Advisory Services, EY Global Limited
steve.krouskos@uk.ey.com | +44 20 7980 0346
Follow me on Twitter: @SteveKrouskos
Julie Hood, EY Global Deputy Vice Chair,
Transaction Advisory Services, EY Global Limited
julie.hood@uk.ey.com | +44 20 7980 0327
Follow me on Twitter: @juliehood_EY
Barry Perkins, EY Global Lead Analyst,
Transaction Advisory Services, EY Global Services
bperkins@uk.ey.com | +44 20 7951 4528
Americas
William Casey, EY Americas Leader,
Transaction Advisory Services
william.casey@ey.com | +1 212 773 0058
Asia-Pacific
Harsha Basnayake, EY Asia-Pacific Leader,
Transaction Advisory Services
harsha.basnayake@sg.ey.co | +65 6309 6741
Europe, Middle East, India and Africa (EMEIA)
Andrea Guerzoni, EY EMEIA Leader,
Transaction Advisory Services
andrea.guerzoni@it.ey.com | +39 028 066 93707
Japan
Vince Smith, EY Japan Leader,
Transaction Advisory Services
vince.smith@jp.ey.com | +81 3 4582 6523
Global Capital Confidence Barometer
April 2019 | 20th edition
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