KPMG has shared its response to the latest UK Q3 M&A data.
Rob Baxter, UK Head of Corporate Finance at KPMG, commented:
“A combination of domestic and global factors continues to suppress UK dealmaking. But while the cost of borrowing will remain high, slowing inflation and a belief that central bank rates may have peaked are providing hope that more benign economic conditions can support successful dealmaking in 2024.”
Baxter added:
“Even in the current challenging landscape, deals involving high quality businesses are still getting done, but for the market to recover – boards, investment and credit committees need to feel that economic stability is here to stay.”
KPMG LLP, a UK limited liability partnership, “operates from 20 offices across the UK with approximately 17,000 partners and staff.” The UK firm recorded “a revenue of £2.72 billion in the year ended 30 September 2022.”
KPMG is a global organization of independent professional services firms “providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such.”
KPMG International Limited is “a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.”
Last month, KPMG had commented on the recently released Bank of England money and credit data.
Karim Haji, Head of Financial Services at KPMG UK, comments on today’s Money and Credit Data from The Bank of England:
“Consumer borrowing was down slightly in October, which could be a sign of things to come as we approach the end of the year when loan covenants are reviewed by the banks and fixed rate loans from prior years expire. As a result, customers will find themselves paying significantly more and some may find it increasingly difficult to secure a loan as credit conditions tighten further, as well as defaulting on their loans. While we’re currently seeing the number loan defaults increasing at pace, this is in the context of starting from a very low base and so the absolute level of defaults are not yet a cause of concern. However, with the Autumn Statement offering little hope for borrowers, the combined stress of the cost-of-living crisis and interest rates will really bite and banks will need to continue to step up to provide sound and easily accessible guidance for customers.”