Mergers and acquisitions set to bounce back in second quarter

AFTER a glum first quarter for mergers and acquisitions (M&A), Deloitte expects global volumes to have increased by as much as eight per cent in the second three months of the year.

The business services firm predicts that a nascent economic recovery in the US will drive the number of deals to 7,500 globally, 560 more than in the first quarter.

Both real GDP and corporate indicators in the US indicate an improvement in M&A activity.

Richard Lloyd-Owen, Deloitte’s lead partner for M&A services, said: “it looks as though investor confidence is returning, particularly in the US”, adding, “it seems as if corporates are loosening the purse strings to secure growth and returns”.

Towers Watson also noted a strong performance for European acquirers in the second quarter, suggesting that they were outperforming competitors in both North America and Asia, citing research conducted by the group and Cass Business School.

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