KPMG predicts surge in M&A activity

KPMG predicts surge in M&A activity

Window of opportunity for companies to make strategic moves

Mergers and acquisitions in 2007 could reach the record levels of 2000 if
companies take advantage of a window of opportunity and ‘execute strategic
deals’, according to KPMG’s Global M&A Predictor.

The firm said ‘intelligent deals’ done by corporates could ‘break the recent
siege laid to the world’s M&A markets by private equity houses and hedge
funds’.

KPMG quoted data from Dealogic, which revealed that deal numbers are up on
the previous six months. 

The firm predicted, given current benign debt market conditions combined with
sound corporate balance sheets, further increases in activity ‘albeit at a
slower rate’

It is anticipated that M&A activity could then plateau in 2007.

Stephen Barrett, international chairman of KPMG’s corporate finance practice,
said that ‘despite early signs that the pace of global M&A activity is close
to peaking, KPMG’s Global M&A Predictor suggests that there is still
considerable scope for corporates to forge intelligent deals’.

‘Corporate confidence is high, balance sheets are strong and, given the
astute management of the corporate sector, there is plenty of room for
corporates to drive further growth in profits from revenue and cost synergies.
In addition, macro-economic conditions are favourable,’ he added.

Related Articles

Finance director of CMS on mergers, technology and challenges ahead

Corporate Finance Finance director of CMS on mergers, technology and challenges ahead

3w Emma Smith, Managing Editor
SMEs at risk of getting burnt by interest rate rises – why accountants should take note

Corporate Finance SMEs at risk of getting burnt by interest rate rises – why accountants should take note

2m Marc Bajer, CEO, Hadrian's Wall Capital
Grant Thornton recruits new corporate finance partner

Accounting Firms Grant Thornton recruits new corporate finance partner

1y Emma Smith, Managing Editor
Total fraud value at £2bn five-year high, finds BDO

Accounting Firms Total fraud value at £2bn five-year high, finds BDO

2y Stephanie Wix, Writer
MHA MacIntyre Hudson appoints corporate finance director

Accounting Firms MHA MacIntyre Hudson appoints corporate finance director

2y Stephanie Wix, Writer
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

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

2y Stephanie Wix, Writer
KPMG announces senior partner promotion in Newcastle

Accounting Firms KPMG announces senior partner promotion in Newcastle

2y Stephanie Wix, Writer
Independent city firm reports 70% growth

Accounting Firms Independent city firm reports 70% growth

2y Stephanie Wix, Writer