Interview, Fireside Chat
The Next Phase of Corporate Strategy
- Corporate strategies are expected to shift from a sole focus on shareholder value to incorporate social purpose as a lasting post-pandemic impact, with a specific acceleration in U.S. attention on racial inequities and a pivot in ESG focus from environmental factors to social components.
- Organizations will likely implement tangible actions to support social purpose, including setting specific employment goals and committing meaningful capital to communities, rather than relying on verbal commitments.
- Supply chain rebuilding efforts to address U.S.-China technology concerns are projected to accelerate, forcing the onshoring of sensitive offshore chains and necessitating that clients treat secondary and tertiary suppliers as equally critical to the primary one.
- Trends favoring the valuation of digital over physical assets, which accelerated during the crisis, are expected to continue defining the post-pandemic business landscape.
- A significant increase in M&A activity is anticipated as market volatility decreases, driven by substantial capital reserves and pent-up demand, with activity expected to begin in the technology and healthcare sectors.
- Technology M&A will be characterized by larger firms with accelerating business models acquiring competitors for growth, while the healthcare sector will see an acceleration in the consolidation of development biotech companies by big pharma or big biotech entities.
- Companies currently in a state of weakness are expected to lead M&A moves, whereas firms still under stress will likely delay activity until necessity forces a transition.
- Investment banking teams will continue to enhance efficiency by applying lessons learned from the rapid adoption of virtual IPOs, Zoom roadshows, and drone site visits.