CEOs Are Seeing Happy Days Ahead

PwC surveyed 5,050 CEOs in 100 countries and territories over January and February 2021 for the firm’s 24th Annual Global CEO survey.  The findings?  A record 76% of global business leaders predict that economic growth will improve this year.

Survey Highlights

  • 57% of US CEOs plan to pursue new M&A in the next 12 months
  • 63% of US CEOs plan to launch a new product or service in the next 12 months
  • 77% of global CEOs are seeking operational efficiencies as a top priority over the next 12 months
  • 48% of US CEOs plan to increase their investments in cybersecurity & data privacy (with 30% planning to increase investments by 10% or more)
  • More than 22% of US CEOs say they’re adopting new environmental, social & governance (ESG) disclosure standards

Learn more here.


2021 is Proving to be Another “SPAC-tacular” Year.

It is nearly impossible to read an article about Wall Street without coming across a mention about SPACs.  For those not familiar with the term, Investopedia defines SPAC as “a special purpose acquisition company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company.”

Here are some interesting SPACs facts.

  • SPACs are often referred to as “blank check” companies.
  • While SPACs have been around for years, their popularity soared last year with their IPO fundraising hitting a record $83 billion (compared with $13.6 billion in 2019 and $10.7 billion in 2018).
  • SPAC activity in 2021 is far outpacing last year’s record year.  So far in 2021, SPAC IPO fundraising has hit a record $64 billion.
  • In 2020, the average SPAC IPO size was $335 million for 248 listings.
  • So far in 2021, the average SPAC IPO size is $317 million for 202 listings.
  • According to PwC, one of the primary reasons for last year’s SPAC spree was the market entry of high-profile SPAC sponsors with experienced management teams.
  • PwC also cited the fact that SPACs offer an exit opportunity for private equity owners looking to cash out on their investment in the private company target in a shorter timeframe than in a traditional IPO.

Here are some SPACs links to help expand your knowledge.

Learn SPAC 101 from CNBC.

Read about the benefits and challenges of a SPAC in this PwC article.

Visit SPACInsider to keep current on SPAC news and statistics.


Financial Modeling + Stress Testing

PwC surveyed 50 U.S. and Mexico finance leaders last week to gain insights into how COVID-19 is likely to impact their companies. 40% of the survey participants said they were facing difficulty in assessing the impact.

That difficulty is understandable. That said, now is the right time for CEOs, CFOs and other leaders to embrace the uncertainty and leverage financial modeling and stress testing to help in reassessing near-term priorities.

We can help.


Top Health Industry Issues

There is no shortage of challenges facing the USA’s healthcare industry.  The USA spends more on healthcare per capita than other developed nations yet lags in outcomes.The misuse of and addiction to opioids—including prescription pain relievers, heroin, and synthetic opioids such as fentanyl—is a serious national crisis that affects public health as well as social and economic welfare. Learn about the 12 dominant forces that will have the most impact on the healthcare industry in 2018 courtesy of PwC Health Research Institute’s annual report.