KPMG Predicts that Global M&A Market is about to Peak

By Big4.com Staff Writers, August 2007

Global M&A Predictor of KPMG Corporate Finance suggests that the Global Mergers and Acquisitions market is going to peak, and further predicts a fall in overall deal volumes this year. KPMG believes that in the year 2007 the global deal volumes will be much less than those achieved in the year 2006.

Global 1,000 M&A Predictor of KPMG Corporate Finance also believes that the latest data of Dealogic which illustrates increasing average deal size on lower volumes, signifies a "final hurrah" with less, but bigger deals being completed.

Stephen Barrett, International Chairman, Corporate Finance at KPMG, comments that "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."

Global 1,000 analysis of KPMG reveals that in the first five months of the year 2007, there was a major inconsistency between the main trend indicators of deal values and volumes. The study done by KPMG further reveals that in spite of conservative balance sheets, the appetite for M&A transactions seems to be slowing down.

Europe, out of the major global regions, mainly remains positive in terms of potential M&A activity. In terms of valuation, the U.S remains static. In terms of sector regions, M&A prospects seem to exist in Oil and Gas (North America), Basic Materials (North America), Utilities (Europe), Industrial (Europe) and Consumer Service (Europe). The analysis done by KPMG shows that out of all the main global regions, Europe continues shows the strongest M&A picture.