22 Sep 2015

Market for mergers and acquisitions 'strong'

10:37 am on 22 September 2015

Accounting company KPMG is predicting a strong six months of merger and acquisition activity which will offset a flat market in share floats.

In the firm's latest report, Nick McKay of KPMG's mergers and acquisitions group said there were barely any initial public offerings (IPOs) in the last six months - despite predictions of a bumper year in 2015.

Mr McKay said a flattening construction market, and economic pessimism brought on by low dairy prices were the main reasons for a drop off in share offers, and instead private equity funds have come to the fore.

"A couple of good examples are Pacific Equity Partners recent acquisition of Manuka Health and Academic Colleges Group."

Mr McKay said the strong merger and acquisition activity was likely to continue for the next six months.

"KPMG has a full pipeline and our understanding from other advisors is that there is quite a lot of transaction flow to unfold for the remainder of the year." Education and health remained popular sectors.