Eighty-seven percent of CFOs are likely, or very likely, to spend on organic growth in 2025, according to a survey by Gartner, Inc.
The survey involving 110 CFOs, conducted in November 2024, across various industries and regions also revealed that 61% indicated that acquisitions were likely, while 52% anticipated they are likely to hold on to excess cash (see Figure 1).
“The fragmentation of global policies is diminishing economies of scale, posing threats to organizations reliant on large-scale operations,” said Janel Everly, senior director analyst in the Gartner Finance practice. “CFOs must seize current economic shifts to unlock transformative value for their organizations through strategic, well-timed, deals to employ capital agility, as well as bold investments to set them apart from competitors.”
Figure 1: Likelihood of Cash Use Cases
Source: Gartner (May 2025)
Everly noted that “While it’s a common financial strategy for organizations to retain surplus cash during volatile periods, Gartner research suggests that the select few organizations that successfully achieve efficient growth across various economic conditions usually allocate capital to growth during challenging times and reduce operating costs when experiencing strong growth”.
Regulatory Divergence
In addition to allocating funds for organic growth and acquisitions, CFOs should not only allocate funds for organic growth and acquisitions but also dedicate additional time and financial resources to tackle corporate tax, labor and employment issues, supplier contracts, and trade compliance. The rise of deglobalization and nationalism is shaping legal standards, leading to more complex regulatory environments which may require CFOs to review the suitability of their business models.
CFOs should take immediate actions such as working with general counsel to establish legal documentation, assess competitors’ strategic readiness, and coordinate with the chief human resources officer to plan for workforce transitions. Furthermore, they should involve the head of enterprise risk management to evaluate impacts on business value drivers, and partner with the head of supply chain to implement scenario planning.
Gartner clients can read more in Top External Trends for CFOs in 2025. Nonclients can read Building an Effective Capital Allocation Strategy for CFOs.
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Tags: Accounting, Small Business
