Capital Confidence Barometer EY April 2014

April 2014 | ey.com/ccbGlobal 10th editionCapital C o n fde n c e Barometer Reshaping for the future M&A Measured moves, bigger deals Economic outlook Resilient confdence despite shocks and low growth Cost management rules Permanent feature of a low-growth future Growth takes new directions Innovation at center stage Reshaping for the future Learning to thrive in a low-growth and volatile environment, companies are taking a pragmatic view, balancing risk and returns Key fndings consider cost reduction their primary focus%60 expect to pursue deals greater than US$500m in size%27 plan to pursue an acquisition%31 expect deal pipelines to increase%29 see the global economy improving — resilient confidence in the face of shocks%60 view credit availability as stable or improving%88 have confidence in corporate earnings — the highest level in five years%65 “ The business world is taking a new shape — leading businesses are responding by reshaping for the future.” A note from Pip McCrostie, Global Vice Chair, Transaction Advisory Services Our 10th Global Capital Confdence Barometer clearly illustrates the many complex challenges on today’s boardroom agenda. For leading global corporates, striking a balance between risk and reward has rarely been so diffcult.