Friday, October 26, 2007

KPMG Says M&A Market About to Peak

KPMG is calling the top of the M&A market!

The firm's Corporate Finance's Global M&A Predictor is indicating that global merger and acquisition activity is about to peak. Further, it thinks that overall deal volumes in 2007 will be below records achieved in 2006. How do they do this: looking at a forward index of 1,000 leading companies' net debt to EBITDA ratios and Price Earnings ratios shows that things are slowing - 12 month forward PE valuations is increasing only marginally. However, there is still money sloshing around - cash and debt level remain high, but investor confidence and appetite are certainly more conservative...

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