MORE MERGER DEALS SEEN THIS YEAR
Kolkata, February 8, 2010
The Telegraph
The merger and acquisition (M&A) market is set to revive globally this year with the corporates’ appetite for deal-making increasing at a slow but steady pace.
A recent survey by global consulting firm KPMG revealed the same.
“The latest predictor numbers point to a slow but assured improvement in the global deals market over the next 12 months even though credit markets remain tight,” the report said.
Mirroring the trend in the global M&A space, India is also witnessing a jump in the quality and quantum of conversations around potential transactions, it adds.
According to Rohit Kapoor, head (corporate finance), KPMG India, “There is a guarded optimism in the boardrooms on inorganic growth initiatives and during the year we expect this to manifest into a healthier level of transactional activities.”
The domestic private equity space seems to have become active again, indicating deals will substantially increase this year.
“We are already starting to see a high volume of deal flow. Recovery in the domestic equity markets means private equity firms will continue to have concerns on valuation expectations and face significant competition from public markets,” KPMG head for private equity advisory, Vikram Utamsingh, said.
However, according to Dealogic statistics, the value of M&A activity worldwide fell 19 percent in January.
Faster growing regions such as Asia and Latin America show a rise in deal volumes, in contrast to the US and Europe.
Dealogic, which monitors M&A activity, said 2,637 deals were done in January 2010, down from 3,181 in the same period a year ago.
Healthcare is the leading sector for deal activity in January, followed by telecom, oil and gas.
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