India strongest mkts for M&A deals globally: KPMG 11/08/2014

India strongest mkts for M&A deals globally: KPMG
11/08/2014 16:13
India has been one of the strongest markets for mergers and acquisitions (M&As) in the first half of 2014, according to consulting firm KPMG’s Global M&A Predictor report. The number of M&A deals involving Indian companies in the six months ended June increased by 10 per cent. Globally the number of these deals declined by 1 per cent, said the media report. Over the last 12 months, Indian appetite for such deals has been even more impressive, increasing 21 per cent compared with a global average of 16 per cent. “Confidence that the new government will strive to revive the investment cycle and focus on policy and fiscal reforms is expected to keep India very active on the global radar,” said Vikram Hosangady, head-transactions & restructuring and national leader-private equity at KPMG India, said in the report. The number of completed deals globally between January and June of 2014 fell by 2 per cent according to the report. However, the recovery of the global economy coupled with large corporate cash reserves contributed to a 26 per cent increase in the number of M&A deals announcements during the same period. This is an indication of the positive sentiment that is returning to global M&A markets. The KPMG Predictor looks at the appetite and capacity for M&A deals at a global level by so by tracking and projecting important indicators such P/E (price/earnings) and net debt to EBITDA (earnings before tax, depreciation and amortization) ratios for the next 12 months. It uses data comprised from 1,000 of the largest companies in the world by market capitalization.