_ C@p_T3st

October 2014 | ey.com/ccb | 11th edition
Capital
Confidence
Barometer
Global
Middle-market deals to
fuel M&A rebound

Global Capital Confidence Barometer | October 2014
44%
Nearly half see global economy as
stable; helping boost M&A appetite after
five-year slump
66%
Two-thirds report bulging M&A pipelines;
expectation for further expansion
doubles in six months
81%
Vast majority seek middle-market deals
below US$1b, driving next M&A wave;
focus on expanding core business
40%
Big increase in global companies expecting
to do deals in the next 12 months; up by a
third in six months
See page 9
See page 10
See page 11
See page 3

1Capital Confidence Barometer |
fuel M&A rebound
A note from Pip McCrostie, Global Vice Chair, Transaction
Advisory Services
Our 11th Capital Confidence Barometer predicts healthy growth
for M&A globally, which should take the market back to levels
last seen before the financial crisis.
As we predicted in our previous Barometer, much of 2014 has
seen a big increase in multibillion-dollar deals. Now, increasing
competition at the top end and a renewed focus on growing
core businesses will fuel more middle-market deals.
As a result, after a five-year slump — and many stalled M&A
revivals during that time — deal activity globally is set to return to 2006 levels.
The appetite for M&A is as high as it has been for more than three years, supported
by relatively stable economic confidence. Meanwhile, deal fundamentals remain very
strong: balance sheets are healthy, credit is available and valuations are seen as steady.
The biggest indicator of positive deal sentiments is pipeline. Deal pipelines have
increased by a remarkable 30% since April. In addition, two thirds of executives expect
M&A pipelines to expand further over the next year — this is more than double the
number expecting expansion six months ago. In the past, this might have been the
recipe for a wave of high-risk M&A.
Not today. Greater complexity in the shape of global ‘megatrends’ such as digital
transformation and external pressure such as that exerted by shareholder activists
are helping to ensure executives are focused on lower risk transactions. High profile
mega-deals will continue in this environment. However, the Barometer finds that
the majority of acquisitive companies are focusing on M&A to strengthen their core
business, with an eye to boosting market share, managing costs and improving margin
growth. As a result, the vast majority of planned deal activity will consist of bolt-on
acquisitions that will complement their current business model.
This is positive news for the M&A market. After years of contraction and stagnation,
deal activity globally looks set to return to pre-crisis levels. The transformative deals
hitting the headlines in 2014 are set to continue. However, the next chapter of the M&A
story should be middle-market momentum, taking deal activity to new heights.

2 | Capital Confidence Barometer
Macroeconomic
environment
Despite a continuation of disruptive external
influences, greater confidence in global economic
stability lays the foundation for future M&A.
The number of executives that view the global economy
as stable has almost doubled in the past 12 months.

Improved sentiments are driving positive hiring
intentions. Companies are more confident about hiring:
more than half expect to create jobs or hire talent, up
from 31% in April 2014. The number of companies
planning to reduce their workforce has dropped to 7%
from 17% six months ago.
Confidence in market indicators driving
positive hiring intentions
Q: With regards to employment, which of the following does your
organization expect to do in the next 12 months?
Q: What is your perspective on the state of the global
economy today?
Executives are increasingly confident in
the stability of the global economy
While fewer executives today believe the global economy
is improving, the number that believe the economy
is stable has almost doubled. Greater confidence in
economic stability allows companies to plan more freely
for growth and MA. Stability is an essential ingredient
in a healthy MA environment. Another positive signal
is that the number of those who believe the economy is
declining has dropped to negligible levels.
Outlook for corporate earnings shows
strong growth
The number of executives who are confident about
the outlook for corporate earnings has increased
significantly over the last 12 months.
Corporate earnings, particularly in the US, were
remarkably strong in the first half of 2014, with 70%
of the SP 500 beating estimates. Results in the UK
and Eurozone were mixed, as currency and regional
concerns influenced respondents in those geographies.
Other market indicators are also trending positive.
Q: Please indicate your level of confidence in the
following at the global level
Resilient MA sentiments not dampened
by increased geopolitical risks
Although they do not expect major shocks to the
economic or financial system, our respondents
identify geopolitical instability as a potential threat
to their business. Driven by tensions between Russia
and Ukraine and ongoing conflict in the Middle East,
geopolitical issues figure more prominently than six
months ago. In contrast, concerns about emerging
markets and deflation have both fallen.
In the past, issues such as these would have stalled any
MA uptick. Now, executives are more comfortable
taking risks amid all this uncertainty.
Q: What do you believe to be the greatest economic
risk to your business over the next 6–12 months?
Oct-14Apr-14
53%
44%
3%
60%
31%
9%
Oct-13
65%
24%
11%
DecliningStableImproving
Equity valuations/
stock market
outlook
Corporate
earnings
Short-term
market stability
Credit availability
Apr-14 Oct-13Oct-14
77%
65%
64%
54%
21%
58%
54%
48%
49%
54%
29%
43%
Oct-13 Apr-14 Oct-14
7%11%
48%
41%
17%
52%
31%41%
52%
Reduce workforce numbers
Keep current workforce sizeCreate jobs/hire talent
0%
10%
20%
30%
40%
50%
60%
Inﬂation
Deﬂation
Increased global
political instability
The effects of tapering
of quantitative easing
Slowing growth in key
emerging markets
Apr-14Oct-14
37%
25%
26%
15%
7%
14%
14%
6%
3%
30%
21%
2%
Pace of structural
reforms in Eurozone

Corporate
strategy
Companies are making moves to position themselves
for growth in a challenging environment shaped
by fast-emerging global megatrends and enhanced
shareholder engagement.
In line with their growing confidence in global economic
stability, more companies are expanding their core
business by changing their mix of products and services
and increasing product introductions. Our survey
shows a threefold increase in the number of companies
adopting both of these strategies.

Companies seek growth — but not at
the expense of cost efficiencies
The focus on growth is tempered by a disciplined
approach to cost reduction and operational efficiency,
as executives remain mindful of lessons learned
during the global financial crisis. Fewer companies
are preoccupied with survival.
Organic growth centers on core
capabilities; higher-risk strategies
remain attractive
In line with their growing confidence in global
economic stability, companies are taking on more risk
as they expand their core businesses by changing
the mix of products and services. Our survey shows a
threefold increase from a year ago in the number of
companies changing their product mix.
This reflects a pattern of complex activity where
companies are divesting non-core units and
strengthening and expanding their core and
complementary businesses through sophisticated
transactions, such as asset swaps, spinoffs and
joint ventures.
Q: Which statement best describes your organization’s
focus over the next 12 months?
Q: What is the primary focus of your company’s organic
growth over the next 12 months?
Lower-risk
Higher-risk
% focused on growth
Oct-12 Apr-13 Oct-13 Apr-14 Oct-14
41%
52%
58%
40%
49%
30%
40%
50%
60%
Oct-14Apr-14
49%17%
35%
1%
40%
8% 15%
37%
6%
Oct-13
58%
32%
2%
Maintain stability
Cost reduction and operational efﬁciency
Survival
Growth
Apr-14Oct-14 Oct-13
New sales
channels
More rigorous focus
on core products/
existing markets
Increase RD/product
introductions
Invest in new
geographies/markets
Exploiting technology
to develop new
markets/products
Change mix of existing
products and services
14%
22%
17%
6%
11%
17%
40%
24%
23%
3%
16%
12%
8%
15%
9%
21%
12%
30%

Activist shareholders
influence boardroom agenda
With growing success and greater influence, activist investors continue to rise
in prominence as the market enters a new phase of low but stable growth. Cost
management, portfolio optimization and returning cash are key areas of focus.
MA will also likely be part of the story with asset sales and acquisitions part of
the ever-broadening activist dialogue.
As a result, companies are stepping up their efforts to manage shareholder
activism, enhancing communication with stakeholders, monitoring signs of
activist pressure and performing ongoing portfolio reviews.
The consumer products sector, which has seen several notable cases of activist
intervention, is especially susceptible to activist influence due to the high profile
of the companies and the investment opportunities available.
Q: Which of the following has been elevated on your
boardroom agenda as a result of shareholder activism?
Select up to two.
48% 30% 28% 25% 20% 14% 11% 5% 1%
Cost reduction
Share
buy-back
Cash dividend
payments
Strategic
divestment
Portfolio
analysis
Spinoff/IPO
Acquisition
Our shareholders
have not raised
these issues
We do
not have
shareholders
| Capital Confidence Barometer6
Shareholderactivism
17%
Not
applicable
Making management
changes as a
result of activist
intervention
Nothing: we are
confident in our
current strategy and
not actively preparing
for activism among
our shareholders
Conducting an
“activist audit” —
continue with
improvement around
cost, efficiencies and
performance
Conducting ongoing
portfolio review to
grow revenue, increase
margins and optimize
value
Monitoring early
warning signs for
activist pressure
Ensuring we have open
and proactive lines of
communication with
our shareholders
8%3% 9% 17% 22% 24%
The C-suite agenda — organic and inorganic growth priorities — is increasingly swayed
by the growing influence of shareholder activism.
Q: How are you preparing to manage any shareholder activism?

Massive global changes
reshaping corporate strategies
Q: Which of the following will impact your core business
strategy most in the next 12 months? Select up to two.
Governments worldwide are rethinking their strategies and policies in response to huge
challenges. From building social safety nets in key emerging markets to reducing deficits
and debt in developed countries, governments are trying to meet these challenges without
dampening economic expansion. These changes have far-reaching implications for business,
creating an urgent need to stay agile, keeping up with policy changes and ensuring
compliance and collaboration with public-sector agencies.
Driven by shifting expectations and needs by both employers and employees, the traditional
talent contract is being rewritten. An increasing number of mobile, part-time and self-
employed workers are changing the nature of work and the workplace. The move to a more
flexible workforce will provide more opportunities for collaboration and productivity, as well
as acquisitions. Dealmaking in many industries, especially those that are high-tech or IP-rich,
will center on the battle for talent.
In contrast to the overall trend toward a focus on the core, technology assets are in demand
in nearly every sector. Emerging technologies are combining with advanced networks,
computing and new ways of communicating to fundamentally change businesses. As
companies adapt to these advances, dealmakers in all industries will need to decide how
they strategically invest in technology. Front-end early adapters will be the most attractive
acquisition targets, offering innovative and nimble strategic capabilities to acquirers.
As these global megatrends increasingly alter companies’ business models and investment
strategies, those that are able to understand their impact will be best able to position
themselves for future success.
Executives expect global megatrends — particularly rethinking government, the future
of work and digital transformation — to have a significant impact on their business and
acquisition strategies.
Future of work
Rethinking
government
Digital
transformation
Global
rebalancing
Resourceful
planet
Reconfiguring
the financial
system
Cybersecurity
44%34%33%27%18%4% 33%
Q: Which of the following will impact your acquisition
strategy most in the next 12 months? Select up to two.
Globalmegatrends
Cybersecurity
Global
rebalancing
Digital
transformation
Rethinking
government
Resourceful
planet
Reconfiguring
the financial
system
Future of work
38% 32% 27% 26% 21% 4%37%

MA
outlook
The appetite to execute deals is high, and pipelines
are bulging and set to expand further. MA activity
is about to reach pre-crisis levels. Transformative
MA will continue. However, the strongest growth in
MA activity in the coming year will be middle-market
momentum as companies strengthen their core
businesses.
The spate of megadeals during 2014 is having a
ripple effect on the MA market. They increase
confidence in MA and trigger transaction activity
further down the deal chain.

Improve Stay the same Decline
60%
39%
1%
Oct-14
58%
36%
6%
Apr-14
Executives see accelerating MA
market in the near term
An improving view of the resilience of the global
economy, strong equity markets and enhanced
corporate earnings have helped boost the outlook for
MA among respondents. While 2014 has been notable
for high-profile megadeals, the Barometer suggests
that middle-market MA will provide a significant lift to
deal activity.
Almost two thirds of respondents expect deal volume
to increase further in the next 12 months — even after
a relatively positive 2014 for MA. This suggests
continuous improvement in outlook and the number
of respondents anticipating a decline is now negligible.
Unlike the heavy focus on US-based assets in recent
years, a rise in MA is anticipated across all sectors and
geographies in the next year.
Q: What is your expectation for the MA market in the
next 12 months?
MA activity set to rebound globally after
five-year slump
Q: Do you expect your company to actively pursue acquisitions
in the next 12 months?
Q: Please indicate your level of confidence in the following at
the global level
Appetite to acquire hits three-year high
Companies’ appetite to do MA is at a three-year
high, with 40% of executives expecting to pursue
acquisitions in the next 12 months. This is a clear
signal of intent to look at deals as a route to growth.
Dealmaking challenges still persist: just under half of
executives are confident about the likelihood of closing
acquisitions. This may be because of increasing rigor
in the search for strategically aligned assets, more
thorough due diligence or greater competition.
Oct-14 Apr-14
Number of
acquisition
opportunities
Quality of
acquisition
opportunities
Likelihood of
closing
acquisitions
51%
41%
43%
42%
32%
44%
Oct-12 Apr-12 Oct-13 Apr-13 Oct-14
25%
29%
35%
31%
40%
20%
30%
40%
Oct-13
58%
51%
61%

fuel MA rebound
Apr-14
Oct-13
Oct-14
53% 35%
14%
58% 37%
81%
14%
12%
5%
5%
US$0—US$250m Greater than US$1bUS$251m—US$1b
Our previous Capital Confidence Barometer correctly predicted the rise of multibillion-
dollar deals in 2014. These megadeals are having a significant ripple effect on the
MA market. They increase confidence in MA and trigger transaction activity further
down the deal chain.
With the appetite to acquire at its highest for three years, we now expect a new wave
of MA with much more focus on mid-market sized deals. This new middle market
momentum should lift MA activity as companies seek to strengthen — and expand —
their core business.
The climate continues to remain favorable for large acquisitions. However, the growth
of MA should be defined by the major shift in focus among respondents looking to do
deals valued at $250 million and under.
The majority of companies are focusing on acquiring businesses in their core sectors,
with an eye to boosting market share, managing costs and improving margin growth.
As cost efficiencies are paramount, for the vast majority, planned MA activity will
consist of bolt-on acquisitions that will complement their current business model.
The increasing influence of shareholder activism is helping to ensure that cost
management remains a critical component of organic and inorganic growth strategies.
Half of respondents say that cost reduction has been elevated on the boardroom
agenda as a result of shareholder activists.
While the majority of companies are focusing on acquiring bolt-on businesses, more
than a third still expect to undertake transformational deals. The upper end of the
MA market should continue to see megadeals, but we can also now expect a formerly
subdued middle market to vigorously enter the fray. The net result should be a far
more buoyant deal market than we’ve seen for the past five years.
Q: What is the maximum single deal value expected
over the next 12 months?
Middlemarket Focus on core and bolt-on acquisitions to drive middle-market deals
The majority of deals swelling
pipelines are focused on
strengthening the core business, by
boosting market share, managing
costs and improving margin growth.

=5
4
3
2
1
4% 24% 72%
3% 25% 72%
6% 54% 40%
DecreaseRemain constantIncrease
11% 39% 50%
2% 16% 82%
Currentpipeline
Expected growth in the next 12 months
Bullish deal intentions as pipelines swell
The number of companies that have more than five
deals in the pipeline has increased significantly.
Renewed discipline in dealmaking is forcing companies
to thoroughly examine many more investment
opportunities to find the best strategic fit.
The number of deals being considered by our
respondents has also substantially increased, with
the aggregate total up 30% since April 2014.
A further sign of growing momentum: almost two
thirds expect MA pipelines to expand further
over the next year — more than double the number
expecting increases six months ago.
An analysis of the correlation between current pipelines
and expectation to increase shows that companies
with the smallest pipelines express the most desire to
expand in the next 12 months. Companies with larger
pipelines are overwhelmingly in favor of maintaining
or even increasing theirs as well.
This move toward larger pipelines bodes well for
a rebound in MA in the near term — especially in
the middle market, where there are more assets for
companies to target.
Bulging pipelines expected to expand even
further in the next year
Correlation analysis between current and expected pipeline
Q: How many deals of all sizes do you have in your pipeline today?
2
1
4
3
=5
Apr-14Oct-14
32%
15%
23%
10%
8%
19%
13%
30%
24%
26%
Q: How do you expect your deal pipeline to change over the
next 12 months?
No change
Decrease
Increase
Apr-14Oct-14
5%
66%
29%
29%
62%
9%
Total deals in respondents’ pipelines
Apr-14 2,273
Oct-14 2,963
1,0000 2,000 3,000
Apr-14Oct-14

Stable valuations to enable dealmaking
Modest valuation gap and confidence
in asset prices underpin positive
deal sentiments
There is a strong consensus among our survey
respondents. Half of executives see only a small
discrepancy between buyers’ and sellers’ expectations
on asset valuations. This, combined with the outlook
for stability in the valuation gap and the overall value
of assets, will encourage dealmaking in the near term.
The number of respondents that see the current
valuation gap as either higher or lower than
25%, which would be difficult to resolve through
negotiations, is now down to only 7%.
The more stable outlook for both the valuation gap
and price of assets in the next 12 months reinforces
the view on stability in macroeconomic conditions and
the MA market.
As buyers become more confident in newly acquired
assets’ long-term value, and sellers no longer hold
out for higher prices in the future, volumes should
accelerate — especially in the lower middle market,
where the valuation gap is most easily bridged.
Q: What do you expect the price/valuation of assets to do
over the next 12 months?
Q: How do you think that buyers’ expectations currently
compare to sellers’ (valuation gap)?
Contract
Stay the
same
Widen
Apr-13 Oct-13Oct-14
11%
25%
16%
55%
74%
15%
20%
31%
53%
Q: Do you expect the valuation gap between buyers and
sellers in the next 12 months to:
Signiﬁcantly higher
(25% or more)
Somewhat higher
(10-25% or more)
The gap is small
(10% or less)
Somewhat lower
(10-25% or more)
Signiﬁcantly lower
(25% or more)
5%
8%
2%
50%
35%
Increase
33%
45%
42%
8%
12%
15%
Oct-14 Oct-13Apr-14
43%
43%
59%
Remain at
current levels
Decrease

Dealmaking focuses on core business
Acquisition plans center on core
The majority of companies are focusing on
acquiring businesses in their core sectors, with an
eye to boosting market share, managing costs and
improving margin growth. This is strongly aligned
to their focus on organic growth plans.
Companies are planning to strengthen and expand
the core. They are assessing a range of transaction
drivers — but cost efficiencies are paramount.
Consequently, for the vast majority of companies,
planned MA activity will consist of bolt-on
acquisitions that will complement current business
models or be in adjacent sectors.
More than a third of companies plan to make
acquisitions that give them access to new
technologies or intellectual property. In many sectors,
this will translate into the acquisition of innovative
middle-market assets.
In the current climate, transformative MA —
high-value acquisitions that significantly change the
size of the acquirer — and deals that shift the scope of
their business look set to continue. More than a third
of respondents are considering such transactions.
However, mid-market deals look set to drive volume
in the MA market over the coming 12 months.
Q: What are the main drivers impacting your MA strategy
over the next 12 months? Select up to three.
We are looking to acquire
competitors/similar companies
in our core sector
We are looking both inside and
outside of our core sector
We are looking outside of our
core sector
73%
19%
63%
8%
37%
Bolt-on (complement current
business model)
Transformative (high value
acquisition which signiﬁcantly
changes the size of acquirer)
Q: Are your MA deals planned
in or outside of your core
sector?
Q: Your planned MA
activity will mostly be:
Optimize tax efﬁciencies
Acquire talent
Acquire assets at discount — opportunistic MA
Reduce costs, improve margins
Move into new geographical markets
Improvements to supply chain
Access new technology/intellectual property
Move into new product/services areas
41%
35%
34%
45%
31%
32%
24%
19%
Navigate regulatory issues
Leverage regulatory/legislative opportunities
11%
7%
3%
Gain market share in existing geographical markets

Search for intellectual property and strong
brands to drive key sectors
The top industry sectors have been transacting vigorously and
will continue to see more activity going forward.
Strong deal sentiment across many sectors
Automotive and transportation
Automotive sector MA is being motivated by renewed optimism,
brought about by increasing sales in both developed and emerging
markets and a sector-wide drive to decrease costs and improve
efficiencies. A significant number of deals focus on acquiring
emergent technologies, such as driverless cars and advanced
materials.
45%
Technology
Technology deals derive from increasing competition for assets
related to smart mobility, cloud computing, social networking, big
data analytics and accelerated adaptation. Furthermore, some
established technology companies are making deals involving
“moonshots” — technologies that may drive dramatic change and
commensurate returns, such as the “Internet of Things” (IoT)
and augmented or virtual reality.
44%
Life sciences
Life sciences deals are driven by increased specialization in
therapeutics and advanced treatments, consolidation in medical
devices and an ongoing drive to grow market share and improve
margins. As they face significant growth challenges ahead,
pharmaceutical companies will need to become more acquisitive,
but the growing strengths of big biotechnology and emerging
pharmaceuticals are leading to both increased competition for
deals and more expensive targets.
42%
Consumer products and retail
Consumer products companies have sharpened their focus on
developed-market businesses. In the absence of ample growth
avenues, companies are targeting operational efficiency by
making strategic divestments. Portfolio optimization is emerging
as a critical theme, driving strategic transactions amid increasing
investor pressure on companies to deliver shareholder value. Large
consumer product players are optimizing their brand portfolios
and market exposure by disposing of non-core and lower-growth
businesses and rechanneling investments into acquiring or
expanding in faster-growth or higher-margin businesses.
41%

Debt to fund future dealmaking
Balance sheet strength leads to drop in
highly leveraged companies
Leverage has declined since the global financial crisis,
thanks mainly to increases in equity value. According
to the SP Global BMI (Broad Market Index) —
a cross-country, cross-sector index — the value of
average market capitalization has increased 60%
since October 2009, whereas total debt rose by
only 19%.
The majority of companies in our survey report a
debt-to-capital ratio of less than 25%, leaving them
well positioned to withstand any near-term increase in
interest rates.
Strong balance sheets leave room
for debt
Nearly half of executives expect their companies’
debt-to-capital ratios to increase over the next
12 months, indicating a willingness to take on more
debt to fund growth ambitions.
Those looking to decrease debt-to-capital ratios have
more than halved since April 2014.
Q: What is your company’s current debt-to-capital ratio?
Q: How do you expect your company’s debt-to-capital ratio
to change over the next 12 months?
Oct-13Apr-14Oct-14
68%
39%
44%
24%
33%
32%
5%
3%
9%
8%
19%
16%
Less
than 25%
25%–49.9%
75%–100%
50%–74.9%
Apr-14
Oct-13
Oct-14
40% 33% 27%
34% 46% 20%
18% 36% 46%
Decrease Remain constant Increase

Companies are focusing their
crossborder MA activity around a
core group of developed and top-tier
emerging countries.
The US and UK continue to attract
inbound MA investment. China,
India and Brazil are also very
attractive dealmaking destinations
for our survey respondents.

Top investment destinations and their
top three investors
• MA in Brazil is likely to remain firm, supported by a
governmental focus on infrastructure and a weakening currency,
and underpinned by Brazil’s growing middle class. However, with
elections coming up in October, investors may be in a
wait-and-watch mode in the third quarter of 2014.
• China remains attractive due to its continuing strong and
stable levels of economic growth. With economic rebalancing
a stated policy of the Chinese government, further investment
opportunities should arise for inbound investors.
• India’s deal market is expected to improve. Investor sentiment
is seeing a significant recovery, with stock markets hitting
all-time highs. In addition, the new government’s pro-business
stance should foster a more benign investment landscape for
inbound investment.
• The UK has long been a favored destination for foreign firms
wanting to access the wider EU market. With strong domestic
growth forecast through 2014–15 and a focus on reducing
onerous red tape, the UK should be able to continue this trend.
• The US MA market is attractive to foreign investors, thanks
to improving economic fundamentals and strong corporate
earnings. In this positive transaction environment — and with
an interest rate rise not expected before early 2015 — we expect
high levels of deal activity to sustain over the coming months.
China
India
United States
United Kingdom
United States
Germany
United Kingdom
India
China
Australia
Japan
United States
United States
Germany
China
United Kingdom
Topinvestment
destinationsTopinvestors
United States
Germany
United Kingdom
Brazil

Companies are focused on optimizing
their allocated capital
Preserving: How can we
improve the performance
of our assets?
As companies come out of survival mode
and focus on growth, executives are no
longer focused on preserving capital but are
now turning to other Capital Agenda areas.
Optimizing: What
steps can we take to
maximize our portfolio’s
performance?
More than half (52%) of executives are
planning to optimize capital and preparing to
increase their focus on strategic dealmaking.
A strong Capital Agenda should be at the core of all
strategic boardroom decisions. It is the framework
for all growth and capital management questions.
Investing: What is the best way for
our company to grow — and is it
aligned to our core business?
Companies are actively beginning to focus on
investment, building dealmaking rigor
and discipline, and setting the stage for
later growth; 15% of companies
are devoting their attention
and resources to investing.
Raising: Do we have the right capital
structure to meet our strategic
priorities?
With an active focus on growth and healthy
balance sheets, companies are expecting
to take on more leverage to fund
deals; 33% of executives expect to
focus on raising capital.

19Capital Confidence Barometer |Capital Confidence Barometer |
• In August and September, we
surveyed a panel of more than 1,600
executives in 62 countries; more
than half were CEOs, CFOs and other
C-level executives.
• Respondents represented 18 sectors,
including financial services, consumer
products and retail, technology,
life sciences, automotive and
transportation, oil and gas, power
and utilities, mining and metals,
diversified industrial products
and construction.
• Global companies’ annual global
revenues ranged from less than
US$500m to greater than US$5b:
US$500m (18%); US$500m—
US$999.9m (24%); US$1b—US$4.9b
(31%); and US$5b (27%).
• More than 800 companies would have
qualified for the Fortune 1000 based
on revenue.
• Global company ownership was
publicly listed (64%), privately owned
(22%), PE/portfolio-owned (9%) family-
owned (3%), and government/state-
owned (2%).
The Global Capital Confidence Barometer
gauges corporate confidence in the
economic outlook and identifies
boardroom trends and practices in the
way companies manage their Capital
Agendas — EY’s framework for strategically
managing capital.
It is a regular survey of senior executives
from large companies around the world,
conducted by the Economist Intelligence
Unit (EIU). Our panel comprises select
global EY clients and contacts and regular
EIU contributors.
Aboutthissurvey

20 | Capital Confidence Barometer20 | Capital Confidence Barometer
Global
Pip McCrostie
Global Vice Chair
Transaction Advisory Services
pip.mccrostie@uk.ey.com
+ 44 20 7980 0500
Steve Krouskos
Deputy Global Vice Chair
steve.krouskos@uk.ey.com
+ 44 20 7980 0346
Contactus For a conversation about your capital strategy,
please contact us:
Americas
Richard M. Jeanneret
Americas Leader
richard.jeanneret@ey.com
+ 1 212 773 2922
Asia-Pacific
John Hope
Asia-Pacific Leader
john.hope@hk.ey.com
+ 852 2846 9997
Europe, Middle East, India
and Africa (EMEIA)
Andrea Guerzoni
EMEIA Leader
andrea.guerzoni@it.ey.com
+ 390 280 669 707
Japan
Kenneth G. Smith
Japan Leader
kenneth.smith@jp.ey.com
+ 81 3 4582 6400

EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and
advisory services. The insights and quality services we
deliver help build trust and confidence in the capital
markets and in economies the world over. We develop
outstanding leaders who team to deliver on our promises
to all of our stakeholders. In so doing, we play a critical
role in building a better working world for our people, for
our clients and for our communities.
EY refers to the global organization, and may refer to
one or more, of the member firms of Ernst Young
Global Limited, each of which is a separate legal entity.
Ernst Young Global Limited, a UK company limited by
guarantee, does not provide services to clients. For more
information about our organization, please visit ey.com.
About EY’s Transaction Advisory Services
How you manage your capital agenda today will define
your competitive position tomorrow. We work with clients
to create social and economic value by helping them
make better, more informed decisions about strategically
managing capital and transactions in fast-changing markets.
Whether you’re preserving, optimizing, raising or investing
capital, EY’s Transaction Advisory Services combine a
unique set of skills, insight and experience to deliver
focused advice. We help you drive competitive
advantage and increased returns through improved
decisions across all aspects of your capital agenda.
© 2014 EYGM Limited.
All Rights Reserved.
EYG no. DE0568
ED None
This material has been prepared for general informational
purposes only and is not intended to be relied upon as
accounting, tax, or other professional advice. Please refer
to your advisors for specific advice.
ey.com

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