global perspectives for private companies: appendix...global perspectives for private companies:...

Global perspectives for private companies: AppendixAgility in changing markets

FULL RESULTS FROM DELOITTE PRIVATE’S 2019 GLOBAL SURVEY OF PRIVATE COMPANY EXECUTIVES

2

FIGURE 1

In which country is your company’s headquarters located? (Number of respondents shown.)

Australia 105

Austria 45

Belgium 113

Brazil 69

Canada 171

Chile 62

China 103

Denmark 48

France 100

Germany 121

Hungary 43

India 94

Ireland 76

Italy 144

Japan 106

Luxembourg 41

Mexico 46

Netherlands 86

New Zealand 39

Poland 47

Portugal 34

Saudi Arabia 0

Singapore 46

South Africa 39

Spain 83

Sweden 43

Switzerland 51

Thailand 34

UAE (United Arab Emirates) 50

UK (United Kingdom) 203

US (United States) 303

Demographics

Global perspectives for private companies: Appendix

3

26%

FIGURE 2

Which of the following best describes your title?Americas EMEA Asia-Pacific Total

Owner/partner

Board member

CEO

President

CFO

CIO

COO

CHRO

CMO

Other C-level

Senior vice president/vice president

Head of business unit

Head of department

Controller

Senior director/director

11%

6%11%

2%5%

4%4%

14%13%

12%13%

3%4%

3%

6%6%

3%5%

14%10%

16%12%

3%

2%

2%

3%1%

2%

3%4%

1%3%

1%

1%2%

6%5%5%5%

6%6%

6%

19%16%

22%18%

1%

1%2%

8%4%

14%7%

3%

7%

3%

4%4%4%

1%

1%

1%

1%

1%

1%

1%

13%

Agility in changing markets

4

26%

FIGURE 3

Which category best describes your company's ownership type?

Americas EMEA Asia-Pacific Total

Family-owned

Closely held (excluding family-owned)

Private equity-owned

Venture capital-backed

Listed and traded on a public stock exchange

State-owned

Other

20%

14%17%

13%19%

16%17%

51%40%

43%43%

9%11%

9%10%

5%8%

14%9%

2%4%3%4%

0%0%

1%0%

18%

FIGURE 4

What was your company's 2018 annual revenue?


US$10 million to under US$50 million




US$500 million to under US$1 billion

20%

21%19%

18%17%17%17%

23%21%

24%23%

26%29%

24%27%

16%12%

14%13%

19%


5

FIGURE 5

What portion of your company's current revenue comes from outside your home country?


None

Up to 25%

26% to 40%

41% to 55%

71% to 85%

86% to 100%

56% to 70%

12%

10%8%

26%18%

15%19%

24%21%

21%23%

16%19%

21%19%

12%20%

17%18%

9%9%

11%10%

4%3%

5%4%

6%


6

FIGURE 6

In which industry/sector does your company operate?

Americas EMEA Asia-Pacific TotalConsumer & industrial products 25% 30% 29% 29%

Automotive 2% 4% 2% 3%

Chemicals and specialty materials 1% 4% 4% 3%

Consumer products 7% 8% 7% 7%

Industrial products and services 6% 6% 9% 7%

Retail, wholesale, and distribution 7% 7% 6% 7%

Travel, hospitality, and services 1% 1% 1% 1%

Energy & resources 10% 13% 10% 12%

Mining 1% 2% 1% 2%

Oil and gas 5% 4% 3% 4%

Power and utilities 2% 5% 3% 4%

Shipping and ports 1% 2% 2% 1%

Water 0% 1% 1% 1%

Financial services 20% 19% 14% 18%

Banking and securities 8% 6% 5% 7%

Insurance 5% 6% 3% 5%

Investment management 5% 4% 4% 4%

Real estate and construction 2% 2% 2% 2%

Life sciences & health care 11% 9% 8% 9%

Life sciences 4% 3% 3% 3%

Health care 7% 6% 5% 6%

Technology, media, & telecommunications 26% 23% 33% 26%

Technology 22% 16% 29% 20%

Media 1% 2% 1% 2%

Communications 2% 4% 3% 4%

Other 8% 6% 6% 7%


7

FIGURE 7A-1

Do you expect the following key metrics of your business to go up, stay the same, or go down?Capital investment


Decrease significantly

Decrease

Stay the same

Increase

Increase significantly

3%

1%2%

5%10%

6%8%

37%35%

38%37%

43%44%

40%43%

14%8%

14%10%

2%

FIGURE 7A-2

Do you expect the following key metrics of your business to go up, stay the same, or go down?Full-time headcount



Decrease

Stay the same

Increase


2%

1%2%

9%14%

11%12%

37%33%

37%36%

47%37%38%

39%

10%8%

13%9%

3%

Economic outlook


7

8

FIGURE 7B-1

Do you expect the following key metrics of your business to go up, stay the same, or go down?Cost of raw materials & other input costs (incl. energy)



Decrease

Stay the same

Increase


2%

1%2%

10%13%

9%12%

35%37%

32%35%

41%42%

45%42%

9%7%

13%9%

2%

FIGURE 7B-2

Do you expect the following key metrics of your business to go up, stay the same, or go down?Prices you charge for goods or services



Decrease

Stay the same

Increase


1%

1%2%

6%11%

5%8%

42%38%

41%41%

41%45%

42%41%

10%5%

12%8%

2%


8

9

FIGURE 7B-3

Do you expect the following key metrics of your business to go up, stay the same, or go down?Productivity



Decrease

Stay the same

Increase


1%

2%2%

7%10%

5%8%

28%19%

28%26%

55%49%

47%50%

19%11%

18%14%

2%

FIGURE 7C-1

Do you expect the following key metrics of your business to go up, stay the same, or go down?Profits



Decrease

Stay the same

Increase


1%

2%2%

8%12%12%

11%

27%20%

21%24%

52%48%49%49%

19%10%

16%13%

3%


9

10

FIGURE 7C-2

Do you expect the following key metrics of your business to go up, stay the same, or go down?Gross profit margin



Decrease

Stay the same

Increase


1%

1%2%

9%12%

11%11%

33%22%

27%29%

45%54%

47%46%

13%7%

15%10%

2%

FIGURE 7C-3

Do you expect the following key metrics of your business to go up, stay the same, or go down?Revenues



Decrease

Stay the same

Increase


2%

1%2%

7%10%10%10%

27%20%

21%24%

54%51%52%52%

16%10%

16%13%

2%


10

11

FIGURE 8

What would you estimate your business' revenue growth to be over the next 12 months?


0% or less

1% to 25%

26% to 50%

51% to 75%

75% to 100%

3%

9%5%

43%45%

44%44%

25%24%

22%24%

21%16%

14%16%

9%11%

10%10%

5%

FIGURE 9

What is your level of confidence in the success of your company over the next 24 months (based on revenue, profitability, and growth)?


Extremely low confidence

Low confidence

Neither

High confidence

Extremely high confidence

2%

2%2%

6%11%9%9%

15%10%

16%14%

61%59%

53%58%

21%12%

20%16%

3%


11

12

FIGURE 10

The level of uncertainty in terms of factors that drive future business prospects in my home country is …


Much lower than one year ago

Lower than one year ago

About the same as one year ago

Higher than one year ago

Much higher than one year ago

7%

3%5%

21%23%

18%21%

36%37%

35%36%

26%29%

32%29%

9%7%

12%9%

5%

FIGURE 11A-1

What level of risk do you believe the following may present to your company's growth in the next 12 months? Competition from market disruptors


Very high risk

High risk

Medium risk

Low risk

No risk

4%

6%5%

14%16%

22%17%

35%33%

35%34%

35%34%

27%33%

14%11%

10%12%

4%


12

13

FIGURE 11A-2

What level of risk do you believe the following may present to your company's growth in the next 12 months? Uncertain economic outlook in your home country


Very high risk

High risk

Medium risk

Low risk

No risk

7%

9%6%

17%17%

18%17%

33%30%

31%32%

32%32%

32%31%

14%14%

10%13%

4%

FIGURE 11A-3

What level of risk do you believe the following may present to your company's growth in the next 12 months? Uncertain economic outlook in one or more of the countries you do business with


Very high risk

High risk

Medium risk

Low risk

No risk

6%

8%6%

15%17%17%

16%

35%31%

35%34%

32%32%

28%31%

16%12%

11%13%

5%


14

FIGURE 11B-1

What level of risk do you believe the following may present to your company's growth in the next 12 months? Weaker domestic market demand


Very high risk

High risk

Medium risk

Low risk

No risk

6%

10%6%

12%16%

19%16%

29%30%

35%30%

35%36%

28%34%

17%14%

8%14%

5%

FIGURE 11B-2

What level of risk do you believe the following may present to your company's growth in the next 12 months? Weaker foreign market demand


Very high risk

High risk

Medium risk

Low risk

No risk

5%

8%5%

13%15%

19%16%

32%30%

32%32%

33%33%

32%28%

20%15%

14%16%

4%


15

FIGURE 11B-3

What level of risk do you believe the following may present to your company's growth in the next 12 months? Cost of raw materials and other input costs (including energy)


Very high risk

High risk

Medium risk

Low risk

No risk

6%

11%6%

16%16%

19%17%

37%32%

34%35%

33%30%

26%30%

13%12%

10%12%

5%

FIGURE 11C-1

What level of risk do you believe the following may present to your company's growth in the next 12 months? Increased regulatory requirements


Very high risk

High risk

Medium risk

Low risk

No risk

5%

8%5%

16%16%

18%17%

33%29%

33%32%

32%34%

29%32%

18%13%

12%14%

4%


16

FIGURE 11C-2

What level of risk do you believe the following may present to your company's growth in the next 12 months? Cost of keeping up with technological advances


Very high risk

High risk

Medium risk

Low risk

No risk

6%

8%5%

14%17%

20%17%

33%32%

31%33%

32%32%

32%30%

15%13%

11%13%

4%

FIGURE 11C-3

What level of risk do you believe the following may present to your company's growth in the next 12 months? Ability to secure financing


Very high risk

High risk

Medium risk

Low risk

No risk

5%

8%5%

12%13%

16%14%

30%27%

30%29%

34%35%

30%34%

22%18%

16%18%

4%


17

FIGURE 11D-1

What level of risk do you believe the following may present to your company's growth in the next 12 months? Foreign exchange rate fluctuations


Very high risk

High risk

Medium risk

Low risk

No risk

7%

8%6%

11%17%

22%17%

34%30%

31%33%

34%31%

30%32%

17%13%

10%13%

4%

FIGURE 11D-2

What level of risk do you believe the following may present to your company's growth in the next 12 months? Ability to hire and retain employees


Very high risk

High risk

Medium risk

Low risk

No risk

6%

9%5%

12%14%14%

13%

29%26%

30%28%

36%38%

36%34%

19%18%

13%17%

4%


18

FIGURE 11D-3

What level of risk do you believe the following may present to your company's growth in the next 12 months? Geopolitical uncertainty


Very high risk

High risk

Medium risk

Low risk

No risk

6%

10%6%

15%16%

18%16%

31%29%

27%30%

34%33%

32%33%

16%15%

13%15%

4%

FIGURE 11E-1

What level of risk do you believe the following may present to your company's growth in the next 12 months? Trade barriers (e.g., tariffs, duties)


Very high risk

High risk

Medium risk

Low risk

No risk

6%

9%6%

16%18%

21%18%

32%30%

27%31%

31%32%

31%31%

17%13%

12%14%

6%


19

FIGURE 11E-2

What level of risk do you believe the following may present to your company's growth in the next 12 months? Lack of investment in innovation/research and development


Very high risk

High risk

Medium risk

Low risk

No risk

6%

9%5%

13%14%

16%14%

32%26%

33%31%

33%37%

33%28%

19%17%

13%16%

4%

FIGURE 11E-3

What level of risk do you believe the following may present to your company's growth in the next 12 months? Lack of leadership succession planning


Very high risk

High risk

Medium risk

Low risk

No risk

5%

9%5%

11%13%

16%13%

27%27%

28%27%

35%36%

31%35%

21%20%

16%20%

4%


20

FIGURE 11F-1

What level of risk do you believe the following may present to your company's growth in the next 12 months? Potential cyber attacks


Very high risk

High risk

Medium risk

Low risk

No risk

7%

10%7%

15%16%

21%17%

31%32%

29%31%

31%33%

31%32%

15%13%

9%13%

6%

FIGURE 11F-2

What level of risk do you believe the following may present to your company's growth in the next 12 months? Disruption by traditional competitor


Very high risk

High risk

Medium risk

Low risk

No risk

4%

8%5%

14%14%

20%15%

33%32%

32%33%

37%35%

35%30%

16%13%

9%13%

3%


21

FIGURE 11F-3

What level of risk do you believe the following may present to your company's growth in the next 12 months? Disruption by nontraditional competitor


Very high risk

High risk

Medium risk

Low risk

No risk

5%

9%5%

12%14%

17%14%

31%28%

30%30%

37%36%

30%35%

18%14%

13%15%

4%


22

FIGURE 12

What are your company’s main growth strategies over the next 12 months? (Select up to two.)


Increased productivity

Development of new products and services

Growing existing markets

Entry into new foreign markets

Mergers and acquisitions

Strategic alliances and collaborative projects

36%

31%29%

24%23%

28%24%

21%25%

20%22%

9%19%

11%15%

14%15%

11%14%

10%12%

8%11%

25%

FIGURE 13 (CONTD’)

What are your company’s main growth strategies over the next 12 months? (Select up to two.)

Americas EMEA Asia Pacific Total

Strengthen management team

Digital transformation

A diverse and inclusive workforce

Business model innovation

Superior cost structure

Change management initiative/change in corporate culture

14%

9%12%

20%17%

25%19%

10%9%

9%9%

14%14%

17%15%

9%11%

7%10%

9%11%

14%11%

12%


23

FIGURE 13

What do you believe is your company's main competitive advantage?


Increased productivity

Development of new products and services

Growing existing markets

Entry into new foreign markets

Mergers and acquisitions

Strategic alliances and collaborative projects

14%

13%13%

10%14%

19%14%

10%11%

11%10%

5%9%

5%7%

11%9%

7%9%

5%5%

3%4%

13%


What do you believe is your company's main competitive advantage?


Strengthen management team

Digital transformation

A diverse and inclusive workforce

Business model innovation

Superior cost structure

Change management initiative/change in corporate culture

8%

5%6%

7%8%

10%8%

7%6%

5%6%

11%9%

11%10%

4%4%4%4%

7%6%

5%6%

6%


24

TalentFIGURE 14

Which investments in its employees is your company most likely to make in the next 12 months? (Select up to two.)


Training

Leadership development

Recruiting

Increase in full-time employees

Increase in compensation

None of the above

Increase in part-time employees

39%

42%39%

36%29%

43%33%

33%30%

23%30%

37%34%34%35%

15%18%

12%16%

20%18%

19%19%

4%4%3%3%

38%

FIGURE 15

Which of the following strategies is your company adopting to attract and retain workers? (Select all that apply.)


Developing new talent strategies to attract, recruit, and retain an inclusive workforce

Driving a culture of open and transparent communication with leadership

Enhancing learning and development

Increasing focus on flexibility and well-being programs

Promoting company commitment to social responsibility

None of the above

Internal crowdsourcing, focus on job rotations, global mobility, and diverse experiences

46%

44%41%

35%35%36%

35%

43%42%

45%43%

39%37%

43%39%

29%29%

37%31%

32%32%32%32%

3%3%4%

3%

39%


25

StrategyFIGURE 16

How is your company's business strategy communicated through the organization?


At the executive level only

Above the management level of the organization only

Among selected levels of the organization

Through all levels of the organization

Company's business strategy is not communicated

11%

13%11%

19%22%

17%20%

30%30%

28%30%

37%33%

40%35%

3%4%3%4%

10%

FIGURE 17

Please indicate your level of agreement with the following statement: Culture is strategically important to the success of my company.


Disagree

Neither agree nor disagree

Agree

Strongly agree

Strongly disagree2%

2%3%

4%8%

4%6%

16%11%

13%14%

42%42%42%42%

41%31%

39%35%

3%


26

FIGURE 18

Please select the best description of your company's social responsibility programs.


Social responsibility programs exist but are not well-developed/invested in

Social responsibility is high on our list of priorities as a driver of employee and customer branding

Social responsibility is one of our top priorities and is reflected in our corporate strategy

We do not focus heavily on social responsibility5%

5%6%

27%31%

24%29%

48%49%

45%47%

18%14%

26%18%

7%


27

M&A/financingFIGURE 19B

How likely do you believe it is, that your company will participate in a merger or acquisition as a merger target?


8%

16%9%

29%29%

23%28%

24%25%

20%24%

23%24%

21%23%

15%16%

19%17%

6%

Very likely

Likely

We are not looking, but would consider a deal

Not likely

Highly unlikely

FIGURE 19A

How likely do you believe it is, that your company will participate in a merger or acquisition as an acquirer?


14%

18%11%

30%32%32%

31%

26%29%

23%26%

17%22%

14%20%

10%12%

14%12%

8%

Very likely

Likely

We are not looking, but would consider a deal

Not likely

Highly unlikely


28

FIGURE 23

What would be the main drivers of merger and acquisition activity for your company in the next 12 months? (Select all that apply.)


25%

23%26%

27%23%

29%25%

20%22%

19%20%

23%26%

24%24%

27%

Bargain hunting for underpriced assets

Increased risk appetite among market investors

Pent-up demand among market investors

Opportunity for owners to cash out of their personal investment (partially or totally)

FIGURE 20

What would be the main drivers of merger and acquisition activity for yourcompany in the next 12 months? (Select all that apply.)


Increased availability of capital

Expand/diversify client base

Opportunity to enter new global markets

Renewed confidence in the economy

Efficiencies of scale

44%

45%37%

35%33%

43%36%

37%39%

42%39%

32%28%

28%

28%29%

25%37%

28%

25%20%

37%25%

27%26%

28%27%

32%


29

FIGURE 21

How likely is it that your company will go public?


14%

16%17%

24%26%

18%24%

31%33%

35%32%

28%24%

31%27%

19%

Highly likely

Not likely

Likely within the next 12 months

Likely sometime after the next 12 months


29

30

Technology & disruptionFIGURE 22

What actions, if any, is your company taking to prepare for disruption? (Select all that apply.)


It is an ongoing board discussion topic

We have dedicated teams focused on disruption

We are implementing new business models

We are considering new business models

There is little focus on disruption

None

We are exploring opportunities to take advantage of disruption

31%

34%31%

28%33%

39%33%

34%45%

47%40%

45%42%42%

43%

36%35%

43%38%

22%24%

20%22%

2%2%

3%2%

30%

FIGURE 22

What actions, if any, is your company taking to prepare for disruption? (Select all that apply.)


It is an ongoing board discussion topic

We have dedicated teams focused on disruption

We are implementing new business models

We are considering new business models

There is little focus on disruption

None

We are exploring opportunities to take advantage of disruption

31%

34%31%

28%33%

39%33%

34%45%

47%40%

45%42%42%

43%

36%35%

43%38%

22%24%

20%22%

2%2%

3%2%

30%


31

FIGURE 23

Which departments or areas of your company, if any, are currently the focusof your technology initiatives? (Select all that apply.)


Manufacturing/production

Marketing/sales/customer support

Operations/processes

Product development

Talent management

32%

37%34%

36%35%

41%36%

34%43%

44%38%

39%41%

51%43%

29%29%

37%31%

5%5%

3%4%

34%


FIGURE 24

Which investment(s) in technology is your company most likely to make in the next 12 months? (Select all that apply.)


Cloud computing/software as a service

Enterprise application suites

Data analytics/business intelligence

Customer Relationship Management (CRM)

Internet of Things (IoT)

Automation of business processes

Robotics

29%

34%29%

19%16%

18%17%

25%35%

39%30%

28%26%

30%27%

15%20%

16%18%

25%20%

37%25%

27%26%

28%27%

26%


Which investment(s) in technology is your company most likely to make in the next 12 months? (Select all that apply.)


Three-dimensional (3D) printing (additive manufacturing)

Blockchain (distributed ledger)

12%

13%13%

15%15%

19%16%

25%23%

29%26%

16%18%

22%18%

22%20%

21%21%

30%36%

33%32%

30%34%

43%33%

14%

Machine intelligence (hardware/device-based artificial intelligence)

Mixed reality (virtual and augmented reality combined with IoT)

Computer hardware/software

Information security (cyber intelligence)

Mobile devices

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