KPMG International’s M&A Predictor looks at the appetite and capacity for M&A deals by tracking and projecting important indicators 12 months forward.
KPMG International’s 2018 M&A Predictor report is calling for another robust year of global M&A deal-making in 2018, with predicted appetite and capacity for deals both expected to increase by 5 percent and 17 percent, respectively. This compares well with 2017, when predicted appetite was relatively flat at 1 percent.
KPMG International’s M&A Predictor looks at the appetite and capacity for M&A deals by tracking and projecting important indicators 12 months forward, including P/E (price/earnings) ratios, a good guide to the overall market confidence, and net debt to EBITDA (earnings before interest, tax, depreciation and amortization) ratios, to gauge the capacity of companies to fund future acquisitions. The Predictor covers the world by sector and region and is produced using data comprising 2,000 of the largest companies in the world by market capitalization. All raw deal data is sourced from CapitalIQ and Dealogic, with further analysis provided by KPMG. Dealogic data is used to provide historical deal trends in order to compare the predictions with actual results.