Why Recessions Forge Great CEOs Who Think Beyond Cost-Cutting
04/15/2025
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But the CEOs who make history in downturns aren’t the ones with the deepest cuts
December 16, 2022: -The volume and size of mergers and acquisitions experience a significant downfall in 2022 as macro headwinds decrease the global market.
For the initial time in more than three years, there were no mega agreements valued at more than $10 billion in the third quarter, according to the recent M&A report by Willis Towers Watson.
The 49 significant agreements valued more than $1 billion in the quarter, with 67 essential contracts closing in a similar period before a year.
Despite global slump fears, geopolitical tensions and anticipations for inflation and interest rates to keep increasing in 2023, WTW predicts dealmaking activity will keep going.
“An unprecedented item of disruptive force making headwinds for dealmakers, but opportunities,” Massimo Borghello, human head capital M&A which consults Asia Pacific at WTW, said.
“The fundamentals driving dealmaking are in place and, with valuations moderating following the historic levels acquired in 2021, strategic and financial buyers much similar will take advantage of better-priced opportunities for the development.”
Willis Towers Watson predicted slump fears could trigger a “lipstick” effect next year, where buyers focus on smaller instead than big-ticket deals.
The challenging operating environment is driving companies to sell off non-core assets, WTW said. For instance, energy firms could continue to divest carbon-intensive assets.
“This can make opportunities for buyers expanding product lines, services or supply chains at a decreased rate,” the report said.
The tech sector could see a level of acquisitions in the AI and machine lesson markets with the need for race in digital transformation across all factories.
Persistent, pandemic-era supply chain disruptions could drive the firm to look to M&A to improve operational resilience.
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
Companies invest millions in leadership development, yet many of their best executives leave within a few years. Why?
The most successful business leaders don’t just identify gaps in the market; they anticipate future needs before anyone else.
With technological advancements, shifting consumer expectations, and global interconnectedness, the role of business leaders
The leadership landscape is profoundly changing, influenced by technological advancements, shifting workforce expectations, and the need for adaptability in an unpredictable global environment.
In the fast-paced business world, corporate leaders often find themselves at the crossroads of risk and reward, where bold decisions …
But the CEOs who make history in downturns aren’t the ones with the deepest cuts
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