Private Company CEOs Remain Cautiously Optimistic

CEOs of private companies around the world are cautiously confident about their company’s growth prospects over the next three years, despite deepening economic uncertainty and concerns about an aging, evolving workforce.

The KPMG 2024 CEO Outlook, now in its tenth year globally, reveals 68 percent of private company bosses are optimistic about the potential future direction of their business, with well over half (62 percent) putting Gen AI at the top of their corporate investment priorities. Almost half (48 percent) expect their companies to grow by up to 2.9 percent in the next three years, while just over a quarter (26 percent) view M&A as a leading growth strategy option.

Key Findings:

• 68% of private company CEOs are confident in their business’ growth prospects.

• 62% say that, despite economic uncertainty, Gen AI is a top investment priority for their organization.

• 33% of respondents say the workforce factor with the biggest impact on their organization today is the number of employees retiring coupled with a lack of skilled workers to replace them.

• 71% of private company CEOs say that they’ve kept the same ESG strategy but have adapted their communications to meet changing stakeholder demands.

376 private company CEOs were interviewed for the annual report – from eleven countries and eleven different industry groups, providing a detailed picture of their hopes, fears, priorities and aspirations for the next three years.

While the survey highlights the resilience right now among private company leaders, there are concerns shifting workforce dynamics could damage long-term sustainable growth plans. More than a third (33 percent) of CEOs questioned reveal the biggest impact on their organization today is the number of employees retiring coupled with a lack of skilled workers available to replace them.

Meanwhile, as the business world adapts to the deepening climate crisis, 71 percent of private company CEOs say they’ve stayed true to their ESG strategies, but have adapted their communications to meet changing stakeholder demands.

Conor Moore, Global Head of KPMG Private Enterprise at KPMG International, said: “The reality is there’s a limited amount of capital that companies have to grow right now — and the money that they can get is still expensive."

"With uncertainty still very high, private companies are acting cautiously to make certain that the money they are spending is purposeful."

"While the appetite for M&A is growing, companies will likely evaluate any potential deals quite carefully to determine whether they can get the value they want given the current business environment.”

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