M&A deals enjoy global recovery
Merger and acquisition (M&A) deals among some of the largest firms in the world are on the rise after a slight dip last year, according to one industry expert.
KPMG recently released its latest M&A Predictor report, which analyses key indicators to gauge the worldwide 'appetite' for mergers and acquisitions for the months ahead. A number of companies were selected from all across the globe to take part, including 15 from Australia.
The Predictor uses Price-Earnings Ratio as the main measure of corporate appetite, and the report reveals that forecasted ratios in December last year were 16 per cent higher than in December 2012.
Much of this growth was accounted for by the latter half of the year, which enjoyed a 17 per cent rise in ratios, despite being set back by a fall of 1 per cent in the preceding six months.
KPMG expects this healthy trend to continue throughout 2014 – the increased appetite will be followed by a predicted increase in capacity of 12 per cent over the next 12 months, the consulting firm says.
This is despite the fact that many organisations were still struggling to complete their transactions, with total deals dropping by 12 per cent from January to December 2013.
Is your company ready to ride this fresh wave of optimism and perhaps try its hand in the mergers and acquisitions market?
An M&A deal represents a huge undertaking for any organisation, no matter how large or small, and can have massive implications if not managed correctly.
That's why you should seek the services of someone who can guide you through the process. A change management consulting company can provide you with the expertise and know-how to navigate through even the most complex of mergers and acquisitions.