Author: Shawn Degnan, Managing Director & Growth Market Leader
According to a 2014 research study just released by MorganFranklin Consulting, 43% of participants surveyed expect to complete a significant acquisition in the coming year. How Do Companies Plan to Grow in 2014? 2014 Outlook on Fast-Growing Companies is an annual study exploring growth-company trends and perspectives of finance professionals preparing for smart, accelerated growth. MorganFranklin conducted the study in partnership with FierceCFO, a publication of FierceMarkets and leading source of news and information for financial and accounting management professionals.
The study polled finance professionals, primarily C-suite executives and finance managers from a mix of industries including health care, financial services, government, technology, telecommunications, consumer goods, professional services, and media and entertainment. The researchers aimed to define what “smart, accelerated growth” means to finance professionals, assess growth expectations for 2014, and identify the top areas for hiring this year.
Study participants shared perspectives on growth strategies such as geographic expansion, strategic hires, mergers and acquisitions (M&A), synergies, macroeconomic drivers, revenue growth, research and development (R&D), and innovation. Specific questions included:
- When do you anticipate your next significant acquisition?
- What percentage revenue growth is your organization forecasting in 2014?
- What are your primary concerns around reaching growth targets?
- How does your organization plan to grow in 2014?
- Who in your organization is responsible for handling M&A?
- What investments will your organization delay if revenue targets are not met?
Despite modest revenue growth projections and the recovering economy, the results of the study indicate that fast-growing companies are eager to advance strategic investments and expand in-house capabilities to further drive growth through M&A. The study results signal that organizations are ready for accelerated growth and they are willing to make up-front investments in strategic M&A and future synergies. Growth companies understand that cost-cutting is no match for innovation.
