Worldwide deal levels have fallen dramatically and are expected to continue to do so until the end of 2008 at least, according to fresh analysis on the subject.
Worldwide deal levels have fallen dramatically and are expected to continue to do so until the end of 2008 at least, according to fresh analysis on the subject.
Lack of credit for larger buy-outs and companies reluctant to commit to deals are causing the slowdown, according to business information and media group Thomson Reuters. The M&A data showed global levels fell by more than a third to £791.7 billion in the year to date, indicative of a general international slowdown.
Private equity-backed deals that fuelled last year’s buy-out boom fell 66 per cent in Europe to £24.1 billion and by 86 percent in the US to £21.1 billion in the first half of the year.
Adding to the gloom, the joint-head of Europe Middle East and Africa (EMEA) investment banking at financial services firm UBS, Hermann Prelle, said that another boom similar to the deal fest of 2007 would take another three to four years to emerge.
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