Are you navigating the volatile markets successfully? For 14 years, growth-focused companies have outperformed their value-focused counterparts in shareholder returns, challenging decades of financial wisdom. Today's CEOs face a critical challenge: prioritizing long-term growth amid policy shocks, market volatility, and shorter CEO tenures.
After a record number of CEO exits in 2024, we now have a record number of fresh CEOs in the seat facing this dilemma and finding that M&A can be a powerful lever. It enables CEOs to accelerate revenue growth, make a mark, and explore opportunities amid the volatility, while delivering value for shareholders.
While global announced deal count fell 24% from Q1 2024 to Q1 2025, large deals over $500M (representing 75% of all M&A) grew 4% in number and 33% in value. Notable examples include Google's $32B Wiz acquisition and J&J's $14.6B Intra-Cellular Therapies takeover.
The common denominator? Financial strength coupled with long-term strategic growth objectives—two attributes positioning companies to create lasting value through M&A.
Publicly listed firms focused on long-term growth have outperformed since the 2010s
Amid a record-breaking number of CEO exits, CEO tenures globally are too short to follow through on long-term growth plans
Presssure for faster growth typically drives more M&A in the early years for new CEOs, but uncertainty led to mixed M&A results in Q1
