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M&A market to peak at $5.1tn
30/04/2007
The global mergers and acquisitions (M&A) market is due to peak at $5.1 trillion (£2.55 trillion) in 2008, according to the Ernst & Young Item Club.
Following this, there will be a gentle slowdown towards the end of the century, reports the Sunday Herald.
Cheaply borrowed money and the historically low interest rates of late have contributed to this business situation, the publication indicates.
The newspaper also highlights how economic expansion can increase share prices, which in turn makes companies more suitable for equity-financed takeover bids.
It is also suggested that companies find it cheaper to raise loan finance for cash bids in a monetary climate such as this.
Barry Fraser, a director of Ernst & Young's M&A team in Edinburgh points out: "Scottish players like Bank of Scotland and Sir Tom Hunter's West Coast Capital are leading some of the biggest British deals, such as last year's £1.1 billion takeover of McCarthy and Stone."
Following this, there will be a gentle slowdown towards the end of the century, reports the Sunday Herald.
Cheaply borrowed money and the historically low interest rates of late have contributed to this business situation, the publication indicates.
The newspaper also highlights how economic expansion can increase share prices, which in turn makes companies more suitable for equity-financed takeover bids.
It is also suggested that companies find it cheaper to raise loan finance for cash bids in a monetary climate such as this.
Barry Fraser, a director of Ernst & Young's M&A team in Edinburgh points out: "Scottish players like Bank of Scotland and Sir Tom Hunter's West Coast Capital are leading some of the biggest British deals, such as last year's £1.1 billion takeover of McCarthy and Stone."