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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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