Peter Watson’s Comments on the Latest M&A National Statistics

M&A levels are still well below pre-credit crunch levels and we believe this remains a result of the weakness in the banks and the restriction on cashflow lending. These structural problems tend to restrict deals to those where cash sums or credit lines are available and transactions which are more difficult to finance, such as MBO’s, remain a relative rarity.

That said the interest being shown by private equity is growing and we are aware of some significant fundraising (e.g. Synova Capital) which bodes well for the future. We are optimistic that this, combined with the continued economic recovery, will support future transactions levels.”

Peter Watson, Managing Director, Prism Corporate Broking