Cash to growth
Growth is back on the agenda. While challenging conditions remain for some, a renewed sense of confidence is driving others. So how are these businesses planning to turn their cash into growth?
As businesses across EMEA reach a ‘pivot point’ after one of the longest economic crises in recent history this report seeks to understand what is next. The elements needed for growth are present within the marketplace, with large amounts of surplus cash and a renewed corporate investment appetite.
But what do the 271 C-level executives interviewed tell us?
- More than half identified growth as their top priority
- Over three-quarters claim to have healthy cash piles, with more than 40 per cent increasing since 2011 – the bigger the business the faster the cash accumulation
- Not all businesses have turned the corner, with a large portion of businesses prioritising the strengthening of their balance sheet over the next 12 months
- Those that have the right balance between cash availability and ambition are using a three point strategy to turn cash into growth that focuses on: market expansion, technology and talent
The results of the survey demonstrate that there are discrepancies across the EMEA region both in terms of country specific data and in terms of sectoral trends. As just over 90 per cent of companies interviewed have a long-term strategy in place, a drive for efficiency and growth is common place. What cannot be determined at this point in time is whether these strategies will be able to make the most of the resources they are given. Will efficiency take over and reap the benefits of economies of scale? Will companies attribute a new value to the cash they hold and distribute it as if it were a scarce resource?