American Appraisal: M&A “back with a vengeance” as transactions to hit six-year high
The number of global M&A transactions has reached 14.000 in 2013 and is said to further increase, according to a study by American Appraisal.
The research, which was involved surveys amongst 108 senior corporate executives and 36 private equity general partners, found that the amount buyers are willing to pay for companies will reach 11.3 times EBITDA by 2015. This marks a 23% increase compared to 2013 figures.
Technology, media and telecom (TMT) companies have seen the biggest rise in M&A, with total deal values increasing from USD331bn in 2012 to USD 511bn in 2013. According the report, the sector is said to reach a post-crisis peak of 11.7 times EBITDA in 2015.
Mike Weaver, managing director of American Appraisal comments: “”With surging deal values in many pockets of the world, M&A is back with a vengeance. After a freeze on liquidity, cash-rich companies and freshly funded private equity firms are aggressively pursuing transactions, whether it’s to diversify, own trophy assets or back underutilised businesses.”
The full report can be accessed here.