The Deloitte M&A Index
Q2 2014 – Growth is back on the corporate agenda.
Deloitte predicts a strong resurgence in deal volumes for Q2 2014 bolstered by strong economic figures from the US and Europe.
- Deloitte forecasts a strong resurgence in deal volumes for Q2 2014, bolstered by strong economic figures from the US and Europe.
- We expect the global deal volumes to reach nearly 8000 deals by the end of Q2 2014, up by 10% for same period in 2013.
- More than $500 billion worth of deals were announced just in the first two months of 2014. It appears growth is firmly back on the corporate agenda.
- The S&P 1200 share price index currently stands close to its pre-crisis high, however revenue growth has been declining since 2012. With confidence levels recovering, M&A activity provides a compelling way to enhance revenues and profits.
About the Deloitte M&A Index
The Deloitte M&A Index is a forward looking model that forecasts future global M&A deal volumes and reveals the factors influencing dealmaking. By anticipating M&A deal volumes, we hope to help our clients with their growth strategies.
The M&A Index is created from a wide range of weighted market indicators, including macroeconomic and key market indicators, funding and liquidity, company fundamentals and valuation data. Each quarter, these variables are tested for their statistical significance and relative relationships to M&A volumes.
As a result, we have a dynamic and evolving model which allows Deloitte UK to identify the factors impacting dealmaking and enables us to make a projection of future M&A deal volumes. The Deloitte M&A Index has a 90 per cent accuracy rate dating back to Q1 2008.
M&A Index Q2 2014 ( PDF)