Feeling Bright — UK CEOs Got the Hope
Despite the world’s roller‑coaster politics and inflation’s pesky tight‐rope, a fresh EY‑Parthenon survey shows most UK CEOs are ticking “optimistic” on their business outlook for the next year. In plain words: they’re going from 67% in September to a solid 82% now that they’re feeling positive.
What Makes Them Feel “Good‑Vibes” ?
- Revenue Growth – 78% of CEOs believe their sales will climb.
- Profitability – 80% expect a healthier bottom line.
- Competitive Edge – 77% think their company stays ahead of rivals.
All of this is built on a strong sense of self‑confidence. They’re looking at their performance and saying, “Yes, we’re on the right track.”
The Challenges They’re Watching
Even with the optimism fever, 71% of the survey’s “big heads” said there’s a looming tech, sustainability, and geopolitical shift. They’re saying:
- Rapid tech changes mean compliance isn’t just about rules, but about staying relevant.
- The growing green agenda forces firms to clean up their act.
- Fierce politics could separate the industry leaders from the laggards.
Bottom line: UK CEOs are not only ready to ride the wave— they’re ready to sail past it!
Business transformation remains key, but initiatives need to adapt to market trends
UK CEOs Gear Up for Big Transformation Over the Next Year
According to a recent survey, a sharp majority of company leaders in the UK are setting their sights on revamping their businesses within the coming 12 months. Their main targets are:
- Customer engagement & loyalty – 45%
- Green goals & sustainability – 43%
- Digitising operations & boosting productivity – 43%
So, if you’re running a business in the UK, you’re likely on the same track.
But It’s Not All Smoothing Shifts
Even with enthusiasm on the rise, a handful of CEOs are pointing out gaps in how they’re rolling out their change plans:
- Need 10‑fold faster execution – 19% say time is a ticking clock.
- Boost teamwork across departments – 18% feel cross‑functional and top‑level coordination needs a lift.
- Cost & ROI fears – 24% are watching the budget and returns as serious roadblocks.
Silvia Rindone, Managing Partner for Strategy and Transactions at UK&I, summed it up well: “Our latest CEO Outlook shows a resilient and forward‑thinking mindset among UK CEOs. Yet, nearly a quarter of them point to cost and ROI as major factors shaping the digital transformation narrative – letting us know that balance between innovation and sustainable growth continues to be the top priority. The next year will be a crucial time for organisations to refine their approach, take longer‑term value into account, and truly become a future‑ready company.”
Takeaway
In short: If you’ll be leading a transformation, keep an eye on speed, collaboration, and the bottom line. Your peers are already doing the same, so make sure you hit those targets before they hit the ones that scare them.
Dealmaking expected to rise in 2025 as the UK remains the top investment destination
UK CEOs are Warming Up for a Transaction Bonanza
- 99% of the surveyed leaders are gearing up to chase deals in the next year.
- 62% are leaning toward M&A — a jump from 40% back in September 2024.
- 3‑in‑5 (also 62%) want to team up with others via joint ventures or strategic alliances.
- Roughly 45% are eyeing divestitures, spin‑offs or even IPOs.
What Matters Most to a CEO?
The top phrase on every CEO’s checklist when you’re eyeing a takeover is:
“Does this give us a new edge in product and process innovation?”
That’s the beating heart of 46% of their evaluations.
Capital Investment Landscape
The UK still wins the “spot the levelling of the pond” capital confluence:
- 52% will pour cash into UK gigs over the next 12 months.
- The U.S., France, Germany, Canada and Switzerland follow in that order: 20%, 18%, 16%, 14%, and 14% respectively.
Silvia Rindone’s Take
“M&A is about to hit its stride in 2025, sparked by strategic needs, digital innovation, and a friendlier regulatory backdrop. Leaders must put on their data‑driven thinking caps and navigate these bright new horizons.” — Silvia Rindone
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