Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kiwi firms engage in positive Merger & Acquisition deals

13th March 2014

Market confidence on the rise as Kiwi firms engage in positive Merger & Acquisition (M&A) deals

The current merger and acquisitions climate is seeing plenty of ‘positive’ deals to drive company growth and expansion, according to KPMG New Zealand’s latest M&A Predictor.

The good news story for New Zealand continues – with the latest M&A Predictor figures showing both rising capacity and confidence.

Tony McNaught, KPMG NZ’s Head of Mergers and Acquisitions, says the market is active and buoyant.

“The kind of deals we’re now seeing in the marketplace can be characterised as positive deals. Companies are making proactive, growth-based decisions – they’re seeking out opportunities for enhanced earnings and performance.”

This is a very different picture from the M&A climate a few years ago, says McNaught.

“We’re seeing fewer deals being done because the banks have stepped in, or because poor profitability has left firms cash-strapped. It’s certainly a different beat from the more negative drivers for M&A activity we have seen over the last few years.”

The future climate has different implications for business owners, depending whether they are looking to acquire or divest.

“For business owners who are thinking of selling, this latest M&A Predictor indicates there are currently a healthy number of buyers in the market,” explains McNaught.

“On the other side, if you’re looking to grow by acquisition, you’re going to have a decent amount of competition. And based on the latest forward multiples, the price you’re likely to pay is on the rise.”

KPMG New Zealand’s March 2014 M&A Predictor found:

• The outlook for M&A activity in New Zealand remains ‘very positive’ for the next 12 months.
• Market confidence is up 12% since June 2013, with capacity expected to be up 8% by December 2014.
• Confidence levels across the Asia Pacific region, including Australia and China, have increased markedly since mid 2013.
• New Zealand’s Initial Public Offering (IPO) activity during 2013 was at a 10-year high, with 10 new listings. IPO activity during 2014 is also expected to be strong.

About KPMG’s M&A Predictor
The Predictor is a forward-looking tool, published every six months, that helps our clients consider trends and expectations in merger and acquisition (M&A) activity. By tracking important analyst indicators up to 12 months forward, it examines the appetite and capacity for M&A deals. The rise or fall of forward price to earnings (P/E) ratios offers a good guide to overall market confidence, while net debt to EBITDA (earnings before tax, depreciation and amortisation) ratios help gauge the capacity of NZ firms to fund future acquisitions.

KMPG International also releases a Global M&A Predictor twice a year which provides a similar analysis by sector and country across the globe.

About KPMG New Zealand
KPMG is focused on fuelling New Zealand’s prosperity. We believe by helping New Zealand’s enterprises succeed, the public sector do better and our communities grow, that our country will succeed and prosper.

KPMG is one of New Zealand’s leading professional services firms, specialising in Audit, Tax and Advisory services. We have 825 professionals who work with a wide range of New Zealand enterprises – from privately owned businesses, to publicly listed companies, government organisations, and not-for-profit bodies. We have offices in Auckland, Wellington, Christchurch, Hamilton, Tauranga and Timaru.

Globally, KPMG operates in 155 countries; employing more than 155,000 people in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (”KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news