PracticeConsultingFall in M&A activity to prompt fee slump

Fall in M&A activity to prompt fee slump

The corporate finance arms of the Big Five accounting firms are facing a drop in revenues as the global slump in mergers and acquisitions activity hits the UK.

And KPMG, the top-ranked accounting firm in terms of size and value of deals it advised on, stands to lose the most in revenues and bonuses, following figures released by Thomson Financials quarterly report.

The report said European activity fell by nearly half in the first quarter of 2001, dropping to $155.5bn (Pounds 107.4bn) from $327.9bn, (Pounds 226bn) mirroring a worldwide trend which saw the value of deals fall by more than one third from $1.17tn to $459bn.

The UK was as once again identified as the largest single European market with a value of Pounds 33bn, but the number of deals fell from 407 in the first quarter of 2000 to just 217 for first three months of 2001.

KPMG, despite advising on business valued at $10.8bn and capturing 6% of the European market, suffered a drop in its advisory business as a result, being appointed to just 30 deals in 2001, compared with 64 in 2000.

Similarly, PwC experienced a 50% slump as the number of deals fell to 15 deals from 31 in 2000.

The fall in the number of deals is expected to affect both the big investment banks in the City and those financial advisors involved in smaller deals.

Links

UK plc tops the bidding wars

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer