If you would like to receive Perspective - our monthly newsletter – which brings you all of our latest news and views as well as interviews and opinion pieces then please follow the link below...
M&A set for 25 per cent rise, say analysts
Experts have predicted a 25 per cent increase in mergers and acquisitions (M&A) this year as companies seek to deploy large cash reserves.
Citigroup's analysts said the total value of global deals will hit an estimated $2.9 trillion (£1.8 trillion) by the end of 2011, up from $2.2 trillion last year, Reuters reports.
Although this figure remains significantly below the 2007 record of $4.2 trillion, it would place this year's M&A volumes in line with the tally for 2008.
The Citigroup analysts said their prediction was based on "a statistical analysis of past M&A volumes, projected corporate earnings, valuations and confidence indicators".
They added that companies are thought to be holding about $4 trillion in cash and will have to decide whether to seek growth through deals, strengthen their balance sheets further or hand cash back to shareholders.
Earlier this month, global head of M&A at Morgan Stanley Rob Kindler told the Financial Times that 2011 will be a significant year for deal-making if major transactions make a comeback.
Odgers Interim are UK leaders in Interim Management solutions for the Commercial Sector. We have offices in London, Birmingham, Leeds, Manchester, Glasgow, Aberdeen and Cardiff as well as over 50 offices globally. We are the only Interim Management providers who are part of a top tier international executive search firm. We work closely with our executive search colleagues to find candidates who can offer short term solutions with long term benefits. www.odgersinterim.com