2027 CFO forecast: Mergers and acquisitions on the rise

The appetite for mergers and acquisitions is expected to rise in 2027.

Recent Gartner research found that with a muted forecast for organic revenue growth in the coming year, organizations will turn to M&A and capital projects to drive growth.

In a survey of 150 finance leaders at companies with 2025 revenue of at least $250 million, 50% expected a revenue-impacting acquisition in 2027, up from 32% who said the same heading into 2026.

Gartner surveyed 80 North American CFOs and senior finance leaders as well as 29 from Europe, 26 from Asia-Pacific, and 15 from Australia and New Zealand for its annual global report on planning assumptions.

“CFOs are building capital plans around the growth levers they can control more directly,” Vaughan Archer, senior director analyst in the Gartner Finance Practice, said in a news release. “With organic growth expectations weakening, acquisitions and capital expenditure are taking on greater importance in their plans for 2027.”

About seven in 10 (69%) forecast an increase in capital expenditures in 2027, up from 56% the prior year.

“Fifty-three percent of CFOs view the external environment as favorable, up from 39 percent a year ago, yet only 43 percent expect organic revenue growth above 5 percent,” Archer said in reference to the survey, conducted from mid-August through mid-September. “A healthier economy does not automatically translate into stronger customer demand or sales volumes, particularly while customer preferences shift and pricing power is constrained.”

According to the report, 2027 Budget Assumptions: More AI, Flat Headcount Amid Weaker Organic Growth, 95% of leaders are planning for direct labor cost increases at or above 3%, and 67% expect nonpersonnel input costs to similarly increase. Yet, only half of organizations expect to raise prices by more than 3%.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.