European deal makers predict a €300bn decrease in the value of deals on the M&A market in 2013 compared to last year's predictions.
European deal makers predict a €300bn decrease in the value of deals on the M&A market in 2013 compared to last year’s predictions.
This negative outlook is driven by unfavourable market conditions, high profile IPO failures, such as Facebook earlier this year, and the effect of austerity measures across the European Union.
The survey, “Doing the Deal 2013”, was conducted by mergermarket’s M&A and IPO research arm, Remark and supported by NetJets Europe. It questioned 175 European deal makers on expectations for M&A and IPO activity in 2013.
Some 56% of the respondents do not expect the volume of transactions to increase. Over a half are asking governments to abandon austerity plans and introduce spending measures to revitalise the M&A and IPO markets in 2013.
There is, however, a silver lining as cross border M&A is expected to surge with an 11% increase in volume and value and an additional 500 deals worth more than €65bn expected in 2013.
Click on the infographic below for more details.