Mergers and acquisitions activity hits eight year low

Mergers and acquisitions (M&A) activity has hit an eight year low, down almost 20% from 2012, according to the latest figures from Ernst & Young.

The figures show that in addition to lower numbers of deals being made, the value of the deals had also fallen, despite hopes of improved market confidence due to economic improvements.

M&A values fell 38% from $129bn (£79bn) in 2012 to $80bn in 2013, with firms inclined to add smaller acquisitions to their portfolios, rather than conducting mega-mergers.

Ernst & Young transaction advisory services leader for UK & Ireland Jon Hughes said: “M&A activity both globally and in the UK has remained bleak.

“Deal inertia has continued in 2013 as many companies opted to spectate rather than participate in the M&A market.

“But we are at a tipping point and 2014 should finally see the turning point in this prolonged M&A recession.”

“Deal fundamentals are strong in terms of cash and credit availability.

“Improving boardroom confidence means many large corporates are planning to achieve growth through acquisitions next year.”

Now read:

Social Bookmarks