The market for mergers and acquisitions is expected to remain strong into 2006, according to a new study released by the corporate financial advising arm of KPMG International.
The global M&A market is currently outperforming 2004's activity levels by 19 percent -- measured in both the value and volume of completed deals. As the end of the year approaches, the survey found that 24,806 M&A deals with a combined value of more than $2 trillion have already been completed worldwide. Last year, a total of 20,888 deals, valued at $1.7 trillion, were completed during the first 11 months of the year.
Looking ahead to 2006, the survey also found that, compared to last year, a significantly larger numbers of deals are in the pipeline, and should be completed in the first half of the new year.
The Americas and the combined figures for Europe, the Middle East and Africa still had the largest numbers of deals in 2005. Asia-Pacific experienced the largest growth in targeted mergers and acquisitions -- up 39 percent by value and 50 percent by volume over 2004. Japan alone experienced an 87 percent increase in deal value and a 58 percent rise in deal numbers over the same period a year ago, making Japan the No. 3 targeted country behind the United States and the United Kingdom, and the No. 2 most active acquirer behind the United States through the first 11 months of 2005.
By country, the United States continues to top the value tables with $785 billion from 6,522 completed deals so far this year. However, there has been no growth in activity targeted at the country compared to last year, with total values remaining flat and the volume of activity down by around 3 percent.
The top three global sectors by value of activity in 2005 were telecoms, financial services and real estate.
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