27 Mar 2013

NZ firms show increased confidence

8:48 am on 27 March 2013

New Zealand companies are showing increased confidence and a stronger appetite for mergers and acquisitions.

KPMG's latest MA Predictor shows companies' appetite for deals has risen 19% in the last six months, compared with a 15% increase globally.

The predictor, published every six months, looks at the appetite for mergers and acquisitions and the capacity for deals.

KPMG head of mergers and acquisitions Tony McNaught says the Rugby World Cup suppressed activity for several months but deals have since picked up.

He says recent merger and acquisition activity included the sale of Torpedo7 to The Warehouse.

But Mr McNaught says the deal value, rather than the deal volume, is still quite low in New Zealand.

He says New Zealand firms are more positive than those in two of its major trading partners, and the predictor shows that New Zealand profit expectations were down only 2% - which is within the margin of error.

This contrasts with Australia, where firms report a drop of 19% in profit expectations is being reported, and China, where profit expectations were down 10%.