Apr 14, 2014
From the Global Energy Institute
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 record pace and Europe appears to have stabilized.
However, despite a few large deals, 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 and Acquisitions magazine have conducted a survey of more than ,1000 M&A professionals including those at U.S. corporations, private equity (PE) firms and investment banks.