KPMG warns on M&A market peak
Survey reveals slowing number of deals despite record volumes and valuations
Mergers and acquisitions have reached their peak as the number of new deals
is forecast to slow, according to KPMG.
‘Global activity is about to peak, certainly in terms of deal volume, and we
foresee a continued fall in deal numbers during the course of 2007,’ says
Stephen Barrett, KPMG’s international chairman of corporate finance.
During the first six months of the year, the volume of M&A activity
worldwide increased by 50 per cent to reach $2,780bn (£1,390bn), according to
Dealogic. The average deal size also rose by 58 per cent to $298m, the highest
KPMG said that while several large financing for leveraged buy-outs had been
put on ice due to turmoil in the credit markets, the rising valuations were
proving a ‘headwind’ for other deals.