This past year provided several reasons for executives to feel optimistic about the economy. The Dow Jones surpassed 15,000 points, companies have been issuing IPOs at a record pace and Europe appears to have stabilised. However, despite a few large deals, such as Verizon Communications’ announced purchase of Vodafone’s 45 percent share of Verizon Wireless for $130 billion, the M&A market has been relatively tame. For the first nine months of 2013, global deal volume decreased almost 13 percent while global deal value increased two percent, according to Thomson Reuters.
Several factors indicate that deal volume should become more active. Companies continue to hold massive amounts of cash and interest rates remain at historic lows. However, uncertainty concerning the Federal Reserve’s monetary policy and the implementation of healthcare reform, coupled with stubbornly high unemployment, is keeping Corporate America cautious. In order to gain a better understanding of the current M&A market, KPMG and Mergers & Acquisitions magazine have conducted a survey of over 1,000 M&A professionals, including those at U.S. corporations, private equity (PE) firms, and investment banks.
Download the PDF below to find out more.