M&A challenges loom as techMark CEOs spot green shots

M&A challenges loom as techMark CEOs spot green shots

Returning equity market stability and rising business confidence in 2003 saw techMark CEOs grow increasingly positive about their business prospects, a PricewaterhouseCoopers survey has revealed.

The survey canvassed opinion from 27 CEOs on operational, strategic and funding issues faced by companies listed on the Stock Exchange's specialist technology index.

It found that CEOs have moved from focusing on revenues to building profits. A majority (51%) of respondents say their main priority in the current financial year is increasing profitability, up from 38% in 2002.

The top three initiatives that companies are intending to pursue during the next three years are joint ventures/strategic partnerships, M&A, and entering new markets.

The vast majority of techMark CEOs (89%) believe the current market and rising equity values provides opportunities for M&A, and more than half believe that M&A activity is necessary for the growth of their companies. All software & computer services respondents expect to participate in M&A within the next three years, but most view themselves as consolidators rather than sellers.

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