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: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: cpt :: VAT RATES :: ACCOUNTING STANDARD :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: TDS :: VAT Audit
 
 
« Mergers and Acquisitions »
 What is Triggering the Wave of Mergers & Acquisitions in the Indian Internet Space?
 Oil and gas mergers and acquisitions are finally making a comeback
  Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Mergers and Acquisitions: What’s Happening in the OFS Industry?
 Mergers: Commission approves acquisition of St Jude Medical by Abbott Laboratories, subject to conditions
 Prediction: These 8 Companies Will Get Bought in 2017
 Third Quarter Results Show Continued Strength in Mergers and Acquisitions
 Mergers and Acquisitions Modelling 3 Day Course - 23.03.17 - Research and Markets
 Foiled cross-border mergers and acquisitions
 Mergers and Acquisitions: 15 Important Considerations for In-House Counsel
 U.S. mergers and acquisitions activity expected to remain steady in 2017: KPMG

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 2016 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