Press releases

Global alignment for growth drives optimism for Canadian private companies

Despite the positive outlook, 41 per cent of private Canadian companies indicate likelihood of disruption by a non-traditional competitor

Toronto, January 30, 2018 – Global alignment for economic growth has Canadian executives from private companies feeling a sense of optimism. According to a Deloitte report, Global perspectives for private companies: Plans, priorities, and expectations, 90 per cent of Canadian executives from private companies are confident in the success of their company over the next 24 months. For the first time in more than a decade, global economies are poised to grow in sync. Furthermore, 57 per cent of business executives from private companies in Canada expect their revenue to increase over the next 12 months.

Global perspectives for private companies is a Deloitte Private survey conducted to better understand the dynamics of this important market segment by tracking the plans, priorities and expectations of private companies. The report unveiled that private companies in Canada view technology as a positive disruptor that unlocks growth potential and business opportunities. But, although the overall outlook for global economic growth is positive, opportunities and concerns amongst respondents in Canada are distinct compared to those of private companies from other parts of the world.

“Private companies are an important segment and growth engine for the Canadian economy,” said Mike Runia, National Managing Partner, Deloitte Private. “The positive outlook on revenue growth and profitability is driving confidence in the market growth globally. In addition to that, rapid globalization and technology platforms that are available today are enabling businesses to reach consumer bases that were not possible in the past.”

The Deloitte study found that 68 per cent of Canadian survey respondents view advances in technology as a positive disruptor and enabler for growth. Emerging technologies like cloud computing and predictive analytics are being used by Canadian survey respondents to help increase efficiency (56 per cent), improve customer engagement (43 per cent) and facilitate growth (26 per cent).

“Emerging technologies such as data analytics and cloud infrastructure can also provide access to real time information that helps inform better decision-making,” said Peter Brown, Senior Practice Partner, Deloitte Canada. “Technology can accelerate business in sourcing talent, learning and reaching new clients across global markets.”

Forty-one per cent of Canadian survey respondents said it is likely their company will be disrupted by a non-traditional competitor in the next two to three years, compared to 49 per cent of global survey respondents. Although Canadians were less skeptical than their global equivalents about the likeliness that their company will be disrupted by non-traditional competitor in the next two to three years, it still ranked as the most significant risk to growth for Canadian respondents.

Canadian executives surveyed indicated increased regulatory requirements as the second most significant risk to growth. On a global scale, the two most significant risks to growth in the next 12 months are the cost of raw materials and uncertain economic outlook in the respondent’s home country. Geopolitical uncertainty presents a risk to growth in the next 12 months for 20 per cent of global respondents compared to 13 per cent of Canadian respondents.

“A global economy means global markets,” said Runia. “Canada’s quality of life ranks well globally. Its strong technology class and open agenda for talent sourcing present an opportunity for Canadian businesses especially during a time when the economy is expanding and globalization is accelerating.”

The desire to expand and diversify client bases and enter markets will be the key drivers for merger and acquisition (M&A) activity in the next 12 months. Twenty-five per cent of Canadian respondents anticipate they will acquire, compared to 42 per cent of global respondents.

Increased productivity (31 percent) and growth in existing markets (34 per cent) will be the main growth strategies for Canadian private companies over the next 12 months.

About the survey
A survey of 1,882 executives at global, mid-sized companies was conducted from August 14 to September 18, 2017. One hundred Canadian executives were among those interviewed.

About Deloitte Private
Deloitte Private is exclusively focused on serving private clients of all sizes and driven to address the opportunities and challenges unique to private businesses. Deloitte Private delivers audit and assurance, tax, consulting, and risk and financial advisory services tailored for private companies, including family-owned businesses, closely held (nonfamily) businesses, and private equity and venture-capital-backed businesses.

About Deloitte
Deloitte provides audit & assurance, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights and service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 264,000 professionals—9,400 of whom are based in Canada—make an impact that matters, please connect with us on LinkedIn, Twitter or Facebook.

Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Did you find this useful?
/*Eloqua tracking*/
/*LinkedIn Insights tag*/