Canada - English

Details

  • Service: Advisory, Transactions & Restructuring, Corporate Finance
  • Type: White paper
  • Date: 3/10/2014

M&A Predictor - January 2014 

This issue of the M&A Predictor shows a growing appetite for deals in 2014 according to analyst predictions. P/E (price/earnings) ratios were up 16 percent in December 2013 when compared to 12 months ago. This reflects the last half of the year, which saw a 17 percent increase in forward P/E between June and December 2013. This was compared to a 1 percent fall in the previous 6 months, after concerns over the anticipated mid-year tapering of quantitative easing in the US. The increase in appetite is matched by an anticipated increase of capacity of 12 percent over the next year.

M&A Predictor - January 2014
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KPMG’s M&A Predictor is a forward-looking tool that helps member firm clients to forecast worldwide trends in mergers and acquisitions. The Predictor was established in 2007. It looks at the appetite and capacity for M&A deals by tracking and projecting important indicators 12 months forward. The rise or fall of forward P/E ratios offers a good guide to the overall market confidence, while net debt to EBITDA (earnings before income tax, depreciation and amortization) ratios help gauge the capacity of companies to fund future acquisitions. The Predictor covers the world by sector and region. It is produced twice a year, using data comprising 1,000 of the largest companies in the world by market capitalization.

 

 Contact

Neil C. Blair

Neil C. Blair

Partner, Advisory

416-777-8657

Video

M&A Predictor - January 2014

 

Watch Neil Blair, a Partner in KPMG Corporate Finance, discuss the recent findings in this most current issue of the M&A Predictor, and provide a Canadian perspective on the data.

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