Merger and acquisition activity will hit rock-bottom this year but will
probably recover from 2010 onwards, a KPMG study says.
A slump in deals is likely to accelerate moves by the big firms to switch
staff from M&A to faster-growing areas such as insolvency.
Stephen Barrett, corporate finance international chairman at KPMG, said the
survey of 1,000 of the largest companies in the world, pointed to ‘a very
‘With less liquidity in the market and reduced debt market liquidity,
appetite and capacity for doing deals will continue to decline,’ he said.
However, Barrett added that companies with cash in the bank would pick up
cheap assets and provide ‘clear signals of a slow but purposeful recovery’
within 12 months.
KPMG uses the ratio of net debt to earnings before interest, tax, depreciation
and amortisation (EBITDA) to forward price-to-earnings (PE) to judge a company’s
capacity to buy others.
At the end of November PE ratios had fallen 22% from six months earlier,
suggesting a reduced capacity to do deals, KPMG said.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.