Debt financed deals are expected to make a comeback over the next 12 months.

Debt financed deals are expected to make a comeback over the next 12 months.

Research by mergermarket found 71 per cent of respondents claiming that debt is to be a major source of funding for transactions. Across Europe, 69 per cent of dealmakers expect to see an increase in private equity deals over the next 12 months and just under four-fifths are confident of an overall increase in deal activity.

There was a clear divide in opinion between North American and Asian expectations, with 89 per cent of North American respondents predicting an increase in deals, compared to 47 per cent of Asian respondents expressing either a neutral or negative view.

Business information provider IntraLinks commissioned the survey of 160 global dealmakers in advisory, corporate and private equity firms about their expectations for dealmaking in the next 12 months.

The Asia Pacific region was seen to be the strongest for cross-border dealmaking by 71 per cent of respondents, with Western Europe coming behind North America at just 49 per cent.