13 September 2013
Global M&A activity is set to rise by 6% in the second half of 2013 according to the Deloitte M&A Index.
Deloitte forecasts an exact figure of 14,652 M&A deals to occur globally in the second half of the year, which including recent large deals, will bring the total number of transactions to 30,000 for the end of the year.
Four factors that will have an impact on the volume of deals to come, according to the M&A Index, include corporate health, which is very good in terms of cash reserves; credit, which remains readily available in terms of raising capital for debt or for M&A; deal premiums, which are at a five-year low with shareholders seeking the best deal; and advanced economies, which are likely to use their currency strength to do deals in emerging markets.
Richard Lloyd-Owen, M&A services lead says, ‘our M&A Index projects a positive upturn in transactions globally in the second half of this year. This is led by resurgence in deal activity in the US and the confidence boost provided by the Eurozone finally exiting recession.
‘However, the excitement from recent megadeals does not automatically translate into a sustainable M&A boom. Indeed, we expect M&A activity for the full year to remain broadly flat when compared with 2012.’