Corporate Finance Priorities 2015
Driving Corporate Growth in Divergent Markets
The corporate growth agenda remains at the heart of both corporate decision making and investor expectations. With a broad divergence in global growth prospects, a decoupling of rates and currencies, and a rapid decline in oil prices, it is critical to understand the implications of these changing dynamics and address how best to optimize growth. Global corporate growth prospects are widely decoupled from economic growth prospects, with companies in some regions expected to grow at rates that significantly exceed economic growth forecasts. In this environment, the corporate finance challenge will be how to achieve growth while prudently managing heightened market and geopolitical risk. This decoupling will also heighten investors’ attention on capital deployment, and will in many cases require companies to shift their capital allocation priorities. In addition to capital deployment prioritization, this report focuses on how to use M&A and restructurings to support equity growth premiums; how global capital markets can best be tapped to fuel growth; and how to manage risk in a complicated global marketplace while driving prudent growth.