UK M&A appetite outpacing US and Europe, states KPMG data, but is capacity to transact on verge of decline?
UK business’ ongoing appetite for mergers and acquisitions (M&A) is now outstripping the USA, but data just produced by KPMG suggests that the underlying capacity to fund deals could well be on the verge of waning.
The business audit and advisory specialist states that, between June last year and this year and June 2016, the forward P/E ratios (ie the measure of corporate appetite or confidence) of the UK’s largest corporates is forecast to increase by around 13%. This compares with 8% for Europe and 6% Stateside.