• Register
Return to: Home > News > Tax > Global M&A market confidence falls

Global M&A market confidence falls

Global confidence in the M&A market has fallen in the past six months to June, a KPMG global report has found.

The report, M&A Predictor, found that while total deal values are rising globally the numbers of transactions are declining.

KPMG said despite the fragile appetite for deals currently, there is an encouraging downward trend in net debt/EBITDA ratios, projected to fall 26 percent by June 2012, which means as companies have lower debt levels they should have a greater capacity to borrow money to fund deals.

Asia-Pacific remains one of the most active M&A markets according to KPMG despite a price/earnings decrease in China and Hong Kong.

KPMG Hong Kong head of M&A Jeremy Fearnley said the decline in price/earnings levels reflect the “general uncertainty in the global financial markets as the West seeks to avoid national credit default, stabilise the banking sector and maintain its fragile economic recovery.”

At the same time, the impact of China’s cooling measures is tempering companies’ valuations in the domestic markets. On a positive note, however, the continued deleveraging of companies’ balance sheets is creating a significant war chest and we expect these to be put to use over the coming 12 months,” he explained.

KPMG also said that the healthcare sector is in the strongest position for deals due to low debt levels and there is a high activity expectation for the telecommunications sector in the next 12 months.

 

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.