After calling the top of the M&A market six months ago, the latest version of KPMG’s Global M&A Predictor provides further evidence that M&A activity has now plateaued and is in decline in some areas.

The Predictor suggests that 2008 deal levels may just about hold steady compared to 2007 but deal values will fall away. However, with corporate balance sheets generally looking strong, the capacity for ‘intelligent’ deals to be struck does still remain.

The latest Predictor - a forward looking index of 1,000 leading companies’ net debt to EBITDA ratios and Price Earnings ratios shows that global forward PE ratios have now dropped from 17.1x to 17.0x; confirming the plateau period which KPMG expects to characterise M&A activity in 2008..-

Stephen Barrett, International Chairman of Corporate Finance at KPMG, commented: “There was no satisfaction in accurately forecasting the top of the market six months ago. However, if there is some consolation to be taken, it is in the fact that also as predicted - any slowdown will be a fairly gentle, gradual one. There are definite winners and losers though; look closely and you see that the forward PE ratios are down 0.7 and 0.5 in Europe and the US respectively. It is mainly the AsPac region where forward ratios moved forward strongly from 17.0 to 19.0 which is bolstering the overall numbers. This leaves us with a real mixed outlook. Where there is appetite and confidence, there are constraints such as a lack of funds or suitable targets. Where there is cash, there is nervousness, caution and a slight loss of appetite”

Michael Wareing, Chief Executive of KPMG International, has been appointed as Commissioner within the new Basra Development Commission. The BDC will be a high-level, over-arching body which will bring national, regional and international business knowledge together to advise on investment and growth for the province. Its strategy is to develop a plan for economic development involving both the public and private sectors, and regional and international stakeholders.

Michael Wareing said:

“I am delighted to accept this new position heading-up international input to the Basra Development Commission. There are enormous opportunities for business and enterprise, and as Commissioner I am excited by the prospect of helping to achieve economic growth which will benefit not only the people of Basra and Southern Iraq, but also the entire region.”

The Deputy Prime Minister of Iraq, Barham Saleh, said:

“The Basra Development Commission will bring together business leaders from across Basra, Iraq and the international community to help stimulate growth in Basra. I am happy that Michael Wareing will take up his role as one of the international advisers on the Commission and help Basra reach its full potential as Iraq’s economic gateway.”

Douglas Alexander MP, U.K. Secretary of State for International Development, said:

“With the provisional development strategy now in place, the foundations have been laid for even greater economic progress in Basra, using regional, national and international expertise. I welcome the news that Michael Wareing has agreed to join the Commission to help expand the economic opportunities that exist in Basra and to provide support as it enters a new phased of its development.”
Mike Wareing is Chief Executive Officer of KPMG International. Mike was previously Chief Executive of KPMG’s Europe, Middle East, Africa and South Asia region, a position he held since 2002.

Mike joined KPMG in 1973 and was articled as an accountant in Birmingham. He rose to Deputy Senior Partner in Birmingham, and has also held a number of senior national positions for the UK firm. He has been the lead partner for a number of KPMG’s major clients.

Mike has been closely involved in work for a number of U.K. charities and public bodies. He is currently a Board member of Business Action on Homelessness and joint Chairman of Project Compass which aims to help homeless ex-Armed Services personnel return to full time work. He has recently been appointed as Chairman of the Global Partner Network, which is lead by Business in the Community and which seeks to bring together NGOs charities and companies in the Corporate Social Responsibility area globally.

Continuing its 74-year association with the Academy Awards, PricewaterhouseCoopers LLP has announced that Brad Oltmanns and Rick Rosas will again lead the balloting process for the 80th Annual Academy Awards. Oltmanns and Rosas are the only two people in the world who will know the identity of the Oscar winners before the live telecast.

“PricewaterhouseCoopers ensures complete confidentiality and security in our voting process by counting every single ballot by hand,” said Sid Ganis, president, Academy of Motion Picture Arts and Sciences. “Trust, integrity and tradition are at the core of our relationship with PricewaterhouseCoopers.”

Ernst & Young has announced the admission of 17 new partners to the UK firm with immediate effect taking the total number of partners admitted over the last six months to 29.The appointments are across the firm in all service lines and industry sectors as well as up and down the UK.

Mark Otty, Chairman of Ernst & Young in the UK and Managing Partner Northern Europe Middle East, India and Africa (NEMIA), said:

“We are very confident in the future growth prospects of our firm: Ernst & Young in the UK has grown by nearly 50% in the last three years and across the NEMIA area growth has been exceptional with India, South Africa and the Middle East increasing revenues by more than 40% in 2007 alone.

“Our global strategy of twinning more mature markets with emerging ones and our unique NEMIA operating model are widely acknowledged as a powerful approach and have cemented our reputation for providing exceptional services to clients.

“Ernst & Young in the UK is differentiating itself in the market place through our distinctive values campaign which has received a favourable response from our people, our clients and other stakeholders. We have recruited record numbers of staff at all levels and are committed to continued investment in new partners to drive our business forward.

“Not only do we have the most international and diverse leadership of any major professional services firm in the UK but we have the highest number of female partners amongst the top six firms.

“As well as promoting from within we have also made a major investment in direct entry partners. The firm has built itself a deserved reputation for not only promoting quality candidates internally but attracting the brightest and the best from the external market place. We expect to make plenty more of these appointments throughout 2008.”

Partner admissions:

Adrian Nicholls
Alex Gaunt
Andy Bates
Annie Graham
Clive Martin
David Scourfield
Graham Farquhar
Giles Capon
Ian Scott
Kevin McAuley
Mark Wesley
Matt Maltz
Matthew Evans
Pamela Spence
Stuart Gregory
Taylor Dewar
Tom Lukic

There is a really interesting section on the Deloitte UK website which is encouraging debate on various themes to do with the future of tax services. David Sproul, Richard Buck and Alan MacPherson have kicked off the forum and there are videos from Carmel Moore at Pfizer, Andrew Constantine at Lloyds TSB and various other Deloitte partners.

I would encourage you to have a read:

Click here