Despite the global slowdown that continues to trouble the world's financial markets and some nation's political stability, a number of international companies remain confident they will be able to carry out and push their businesses to viability and stability.

The latest Capital Confidence Barometer bi-annual report from Ernst & Young finds that 41 per cent of leading companies worldwide look to entering into partnerships and making acquisitions in the next 12 months. In the survey of more than 1,000 senior executives around the world, the markets these global companies are eyeing include China, India, Brazil, the U.S. and Australia.

Almost half of respondents are now focused on creating and ensuring "growth'' in the next 12 months, with only 7 per cent focused on making their companies "survive" the global financial turbulence.

"There is a new paradigm with M&A activity and market volatility now able to coexist. Currently, leading companies are shrugging off continued market upheaval and focusing on growth and M&A. For these firms it is not 2008 all over again. They have spent the past three years reducing the financial risk on their balance sheets and taking tough efficiency measures needed to strengthen their positions, which help them manage in volatile times," said Pip McCrostie, Ernst & Young's Global Vice Chair for Transaction Advisory Services.

The survey showed that stronger balance sheets together with a greater focus on operational fitness have posed for a continued appetite for M&A among large cap firms. Greater convergences around the price of assets have also encouraged corporate sellers to come to the table. Almost two thirds or 57 per cent see valuations at current levels for 12 months, a 30 per cent rise in potential sellers compared with six months ago. This means about 26 per cent of global businesses plan to divest in the next year.

"Three years of focusing on capital management underpins the resilient attitude of those companies who might come to the deal table. Large corporates are in much better shape now than 2008. Balance sheets have been significantly strengthened. In addition, businesses have improved their capital structure by reducing interest costs and extending maturities," the report said.

Overall debt has fallen, with 61 per cent having debt-to-capital ratios of less than 25 per cent, while 78 per cent plan to maintain or reduce their debt-to-capital ratios further in the next 12 months.

Many of the leading companies remain optimistic about their own national economies as well as the long-term global economic outlook.

Corporate earnings outlook is strong, with 47 per cent assured they will be at least stable; a further 33 per cent believed earnings potential is positive. Some 68 per cent said capital market conditions are at the very least stable.

Two thirds or 63 per cent of respondents feel that the global economy is at least stable, with confidence particularly high in sectors such as power and utilities, oil and gas and metals and mining.

"Our respondents have learned to manage in volatility: they have the capability - and ambition - to do strategic deals in the current climate,'' McCrostie said.

Meanwhile, the most attractive markets for investment according to the survey are China, India, Brazil, the U.S. and Australia, while those outside the recognized BRIC include Malaysia, Mexico and Argentina. More than a third of respondents said their motivation for M&A was to gain share in a new market.

"Having an effective emerging market strategy is an absolute necessity for leading companies today. A balanced business portfolio needs to have an emerging market presence, as well as mature market operations," Mr McCrostie said.

"The Asian emerging markets are among the most attractive - with their high-growth potential offering some protection against current volatility in mature markets."

The Ernst & Young Capital Confidence Barometer aims to gauge corporate confidence in the economic outlook, to understand boardroom priorities in the next 12 months, and to identify the emerging capital practices that will distinguish those companies that will build competitive advantage as the global economy continues to evolve. This is the fifth half-yearly barometer in the series, which began in November 2009.