KPMG: Global M&A market gets confident

By Rob Starr, Content Manager, Big4.com

KPMG International’s latest Global M&A Predictor shows that the confidence to undertake significant M&A is predicted to return to the world’s largest companies, according to the latest analyst predictions. However, the tides seem to be finally turning as over the past 6 months, global confidence is actually rising to match capacity. In comparison with June 2012, the difference in appetite is dramatic. In the previous edition of KPMG International’s M&A Predictor, analyst predictions showed that appetite levels for M&A were falling across the board.

Despite on-going troubles in the Eurozone, European companies are looking particularly confident, with forward P/E ratios (measuring appetite) up 19 percent on June 2012 and up 16 percent over 12 months. Looking at the country level, although there are understandably considerable variations between markets, the overall trends for confidence and capacity are both overwhelmingly positive. Germany is a good example with an appetite increase of 26 percent since June 2012 and a forecast capacity rise of 20 percent.

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. We operate in 156 countries and have more than 152,000 people working in member firms around the world.