Money Buzz! Europa

Tag: kpmg

  • Half of global CEOs don’t expect to see a return to ”normal” until 2022

    Half of global CEOs don’t expect to see a return to ”normal” until 2022

    The 2021 KPMG CEO Outlook Pulse Survey finds that almost half (45 percent) of global executives do not expect to see a return to a ”normal” course of business until sometime in 2022.

    As opposed, nearly one-third (31 percent) anticipate this will happen later this year.

    The changes prompted by the pandemic have resulted in one-quarter (24 percent) of CEOs saying that their business model has been changed forever by the global pandemic.

    A majority (55 percent) of CEOs are concerned about employees’ access to a COVID-19 vaccine, which is influencing their outlook of when employees will return to the workplace.

    Interesting, 90 percent of CEOs are considering asking employees to report when they have been vaccinated.

    However, one-third (34 percent) of global executives are worried about misinformation on COVID-19 vaccine safety and the potential this may have on employees choosing not to have it administered.

    Government and vaccination rates driving decision-making

    Three-quarters (76 percent) of CEOs see government encouragement for businesses to return to ‘normal’ as the prompt for businesses to ask staff to return to the workplace.

    In addition, 61 percent of global executives said that they will also need to see a successful COVID-19 vaccine rollout in key markets before taking any action toward a return to offices.

    When employees can safely return to workplaces, one-fifth of companies (21 percent) are looking to institute additional precautionary measures.

    Global CEOs are less likely to downsize physical footprint compared to 6 months ago

    The research finds that only 17 percent of global executives are looking to downsize their office space as a result of the pandemic.

    In contrast, 69 percent of CEOs surveyed in August 2020 said they planned to reduce their office space over 3 years.

    Global executives remain apprehensive about a fully remote workforce

    CEOs are considering what the new reality will look like, but post-COVID, only three in 10 (30 percent) of global executives are considering a hybrid model of working for their staff.

    As a result, only one-fifth (21 percent) of businesses are looking to hire talent that works predominantly remotely, which is a significant shift from last year (73 percent in 2020).

  • KPMG and UiPath to develop and deliver intelligent automation solutions

    KPMG and UiPath to develop and deliver intelligent automation solutions

    KPMG Romania has partnered with UiPath to jointly develop and deliver intelligent automation solutions to clients.

    Together, these companies will enable organizations to achieve business-wide digital transformation, leveraging emerging technologies to transform operating models, to innovate to remain competitive, and to reimagine the customer experience.

    The partnership represents the next stage in RPA collaboration between both firms, with a focus on implementing and managing large-scale, transformational digital programs.

    KPMG in Romania’s expertise in consulting and implementation will build on the capability, agility, and scalability advantages inherent in UiPath’s robust end-to-end automation platform. 

  • COVID-19 is changing consumer behavior worldwide

    COVID-19 is changing consumer behavior worldwide

    COVID-19 is having a lasting, worldwide impact on consumer needs, preferences and behaviors, according to a new report from KPMG International.

    The survey tracks consumer trends between May and September 2020 across five industry sectors: consumer & retail (grocery and non-grocery), banking, insurance, entertainment & leisure and travel & tourism.

    Overall, the survey finds that consumers tend to trust brands less than they did pre-COVID 19.

    Insurance was the only sector to see a consistent net gain in trust in the May to September period; while travel & tourism and entertainment & leisure suffered the greatest erosion of brand trust.

    All sectors generally saw a modest increase in brand trust in September, with the exception of banking, which held even.

    Retailers will need to better understand the needs of the customer groups — via segmentation driven by AI and psychometrics. Personalization not only of communications, but also of developed products, will be key to meeting the needs of the new consumer. Besides, consumers are gravitating toward brands that are empathetic and supportive of their values.

    Consumer Commerce is the future. Bricks and mortar will remain an important channel although we know channel agnostic and customer centric is key and the competition will be much broader than today’s retail.”

    Nearly half, 45 percent, of respondents do not feel a strong financial impact, which could mean opportunities for businesses that are able to meet the new consumer’s expectations.

    All consumers predict they will spend less in the next 6-12 months and all are prioritizing savings. Perhaps not surprisingly, ‘value for money’ is ranked as the key purchase driver.

    Key trends in consumer behavior

    • Two in five (43 percent) of consumers are worried about their financial security in 2021
    • More than one-third (36 percent), are prioritizing savings over spending
    • 37 percent are working from home more, and 60 percent plan to do so more in the future
    • One in five (20 percent) want to stay at home as much as possible
    • Confidence in public transportation has declined 37 percent compared to before COVID-19
    • Net spend is expected to be 21 percent less over the next 6-12 months, versus pre-COVID-19
    • Close to half (45 percent) predict digital channels will be their main connection to brands
    • “Value for money” is ranked by 63 percent as the top purchase criteria
  • Cassa software attracts KPMG as a lead investor on SeedBlink

    Cassa software attracts KPMG as a lead investor on SeedBlink

    Cassa, an accounting software that contains elements of artificial intelligence and machine learning, attracted KPMG Romania as a lead investor in the financing round that is targeted on SeedBlink.

    The amount aimed at SeedBlink is 100,000 euros.

    Cassa has been listed on SeedBlink since October – those interested in investing in the company have this opportunity until November 26th, 2020.

    The data about the transaction value and the share package taken over by KPMG are confidential.

    The transaction came after the selection of the Cassa solution in KPMG Startup Grow Pad, an acceleration program that addresses startups with process automation activities, robotic assistance, augmented analytics, cybersecurity, intelligent and analytical applications (data).

    The selected startups are from industries in which KPMG also has expertise: IT, telecom, financial services, real estate, professional B2B services, consumer-trade markets, legal, compliance, and regulatory services.

    What is Cassa

    Cassa is a Software as a Service application that orders the flow of documents smartly and simplifies communication between accountants and entrepreneurs.

    The app was launched in June this year by Cornel Fugaru (34 years old) and Daniel Teodoroiu (32 years old).

    Digitization and thus eliminating accountants’ manual work are based on a technology of optical character recognition (OCR) that allows the transformation of scanned documents, photographs, and PDFs into editable documents.

    The platform targets accountants, which have the opportunity to become resellers for their accounting clients.

    By the end of this year, the company’s management aims to reach 2,000 customers, and by the end of 2021 to have 15,000 users.

  • What are the taxes for transferring a family business between generations

    What are the taxes for transferring a family business between generations

    A new report, KPMG Private Enterprise Global Family Business Tax Monitor, compares tax implications for transferring a family business across 54 countries and territories.

    The survey shows that for a transfer of a family business valued at EUR 10 million, out of 54 countries surveyed, 14 have a specific inheritance tax that applies (15, if we also count the US that applies a wealth tax for family business inheritance), while 16 have a gift tax that would apply to lifetime transfers of the business.

    Of the 10 countries with the largest GDPs in the survey, six (Brazil, Canada, France, Germany, US, UK) have taxes that apply both for inheritance and lifetime transfers, while four (China, India, Italy and Russia) have neither gift nor inheritance tax on transfer of a family business. 

    Other taxes, such as capital gains tax and personal income tax, are applied in some jurisdictions as well.

    In Romania, according to the current tax legislation, there are no taxes on inheritance or gifts when passing the family business to the next generation. (Some taxes may apply for real estate transfers, which are not part of the business).

    While there are tax reliefs in most jurisdictions that can lessen the burden on families transferring their business, many of these are coming under increased scrutiny and families need to be prepared for change.

    For example, in the US, families transferring a business currently benefit from a gifts and estates exclusion of US$10 million, with an annual inflation adjustment (US$11.58 million for 2020) – the exclusion presently has effect until 2026, but there is the potential for the exclusion to be modified or eliminated.

    Similarly, families in the UK benefit from business property relief (BPR) in transferring a business, but there are proposals that could modify or remove this relief.  

  • KPMG signs lease with MIRO, Speedwell’s new Bucharest office project

    KPMG signs lease with MIRO, Speedwell’s new Bucharest office project

    Speedwell announced that it has closed a significant deal with KPMG for an office space at MIRO, the new project located in Băneasa, Bucharest.

    A total of 8.500 square meters of office space has been leased by KPMG, representing approximately 40% of MIRO’s entire leasable area.

    “KPMG in Romania’s decision to move to a new state-of-the-art headquarters in Bucharest reflects our growth ambitions over the next decade as one of the leading consultancy companies on the market and Employer of Choice”, says Ramona Jurubita, Country Managing Partner KPMG in Romania.

    Located in the Northern part of Bucharest, MIRO will offer its tenants innovative high-end design office spaces and a comfortable working environment.

  • Romania’s M&A market shows strong growth, KPMG survey reveals

    Romania’s M&A market shows strong growth, KPMG survey reveals

    Stakeholders expect a further increase in Mergers & Acquisitions (M&A) activity in Romania in 2020 after one of the most successful years in the last decade. The first edition of a new KPMG publication The M&A Landscape in Romania shows investor confidence is continuing to build up, supported by the GDP growth trend and favorable geopolitical position in the region.

    Romania has become a significant investment destination, over the last 15 years, for both strategic and financial investors. Buyers find M&As to be a useful strategy to seize the moment in a rapidly growing environment, while sellers try to realize the value that has been built up in local companies.

    We expect to see another busy year as positive sentiment is fostered by sustainable economic growth and increased attractiveness of Romanian targets, which are strengthening their market position and are opening new development opportunities through regional expansion. Furthermore, Romanian entrepreneurs, in their quest for growth, continue to be faced with a buy versus build strategy and have begun to consider M&As as an integral part of their strategy.

    In the context of a booming global M&A market, our survey found a strong sense of optimism at the national level, with 67% of respondents expecting high levels of M&A activity in Romania to continue over the coming months. Sectors such as technology, healthcare and energy are expected to be particularly attractive.

    The study shows that buyers are worried about substantial differences in price expectations and global macroeconomic uncertainties. At the same time, investors consider that target readiness has a material impact on deal making.