Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: form 3cd :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: cpt :: list of goods taxed at 4% :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARD
 
 
« Mergers and Acquisitions »
 Deals of the day-Mergers and acquisitions Apr 27, 2017,
 GAVS Tech eyes to double revenue from mergers & acquisitions
 New Indirect Tax Regime: Homebuyers and renters keeping fingers crossed on GST impact
 Hitachi India appoints Bharat Kaushal as managing director
 RBI issues new draft rules for M&As
 The 12 digital health mergers and acquisitions of Q1 2017
  Deals of the day-Mergers and acquisitions Apr 19, 2017
 Deals of the day-Mergers and acquisitions Apr 19, 2017
 Foreign investors giving M&A deals in India’s renewable energy sector a miss
 Mergers and acquisitions are getting riskier as insurance claims rise
 The Financial Times started a mergers and acquisitions newsletter for its highest-paying subscribers

M&A market set to pick up in 2010
January, 20th 2010

Analysts are predicting a revival in the market for mergers and acquisitions (M&A) during 2010, with corporates leading the way as private equity firms continue to be dogged by tough credit market conditions.

According to business advisory firm KPMG, the M&A market is set for growth after revisions of over-optimistic earnings expectations in 2009, which it blames for skewing market activity last year.

KPMG pores over key market metrics and analyst statements in order to figure out how much appetite there will be for corporate deal-making activity. It reckons that crunching the numbers has shown just how much analysts overestimated corporate earnings in 2009 - by some 20% - which made it very difficult to predict M&A activity this time last year.

David Simpson, the global head of M&A at KPMG, believes the latest company earnings forecasts look far more sensible, suggesting reality has finally caught up with the market.

With feet firmly planted back on terra firma and earnings forecasts reset to sensible levels, the M&A market is set to make a modest return in 2010 both in the UK and globally, he said.

KPMGs M&A Predictor shows that forward price to earnings ratios are now 7 percent higher compared with last year's adjusted figure, suggesting a gentle increase in corporate appetite for deals. In addition, corporate net debt compared to EBITDA is expected to fall in 2010 suggesting that corporates have more capacity to do deals even though debt is still tight.

Simpson said that the modest increase in corporate capacity and appetite to do deals seems far more realistic than predictions made this time last year.

He said: It is important to highlight, however, that this data is very much about the corporate market. The private equity market is much more dependent upon high levels of debt, putting it at a disadvantage until bank lending picks up. This time around, the M&A recovery will be led by corporates and through IPOs, with the equity and bond markets open to quality credits and growth stories.

Earlier in January another corporate finance advisory firm, Grant Thornton, predicted that M&A activity would improve in 2010 after the volumes and values of deal fell significantly last year.

David Brooks, the firms head of M&A, said that while activity in 2009 turned out to be worse than the corporate finance fraternity had anticipated, in the UK there were grounds to be cautiously optimistic about mid-market M&A for 2010.

Aside from distressed M&A, there are a growing number of private company sales driven by a rising level of interest from acquisitive corporates and a somewhat improved funding environment, he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions