CFOs Anticipate Robust Revenues for 2015
Exceptional Earnings
Overall, tech company CFOs project revenue increases of more than 12%, compared to an 8.7% increase in 2013.
Funding Request
38% of surveyed CFOs said they plan to seek additional capital this year, up from 34% in 2014.
Rewarding Relationship
Among CFOs who plan to access more capital, 51% of those surveyed will turn to a strategic partner to do so, up from 19% in 2014.
Acquisitions Outlook, Part I
96% of CFOs in the survey believe that mergers and acquisitions activity will increase or stay the same this year, up slightly from 94% in 2014.
Acquisitions Outlook, Part II
About two-thirds said acquisitions will be primarily offensive, down from 72% last year.
Strong Sectors
61% said that the software sector—including cloud computing—will account for most of the M&A deals, followed by social media (22%) and biotech (10%).
Merger Motivators
One-third said the need to increase revenue and profitability will serve as the primary M&A driver, while one-quarter said the need to improve market share will.
Rising Stock
62% predict that business valuations will increase this year, up from 27% last year.
Public Exposure
86% said IPO activity will remain the same or increase in 2015, down from 93% in 2014.
Influential Factors
More than one-third of CFOs surveyed said the performance of recent tech public offerings will have the greatest impact on the U.S. IPO market, followed by market volatility (25%), global political/economic issues (23%) and the appeal of IPOs in foreign markets (11%).
Minor Consideration
Just 5% said concerns about a tech bubble will have the most impact on IPO activity.