According to the report by advisory firm The Boston Consulting Group, the value of M&A deals is on track to plunge almost 46% in 2009 as compared to a year ago, taking them down to mid 1990s levels. The mergers and acquisition space has witnessed only 12,700 transactions with a combined valuation of mere USD 681 billion in the first six months of the year, with the number of deals dropping by 17% from the same period in 2008.
The BCG report said that "If the number of transactions for all of 2009 turns out to be double the figure for the first six months, the drop would take the number of deals down to a level last witnessed in 2004."
However, the report asserted that the financial crisis would provide opportunities for game changing acquisitions by companies that are ready to make the right strategic moves when the M&A market returns to growth.
Mr Alexander Roos BCG partner and report co author said that "We expect a window of opportunity offering attractive takeover prospects to open soon. But only those firms that prepared themselves for action will be able to benefit from these favorable opportunities. We have already seen some of our smarter clients making preparations in recent months."