However, after a considerable dip in M&A value in H1-2008, the momentum is expected to pick up in the second half of this year with key focus on pharma, telecom, realty and energy sectors, deal-tracking firm Grant Thornton said in a report today.
"We expect much more stability in the second half of 2008. While we have seen a considerable dip in M&A value in H1 2008 compared to H1 2007, we expect to see a higher value in the second half of 2008 compared to the same period in 2007," Grant Thornton Partner Specialist Advisory Services CG Srividya said.
While private equity investments would continue to show a good momentum during the second half, the value of deals is likely to be lower than the January-June period of 2007 which saw a spate of large deals, Srividya said, adding that consolidation is expected in sectors like airline, IT & ITeS, banking and pharmaceuticals in the second half of 2008.
The total value of deals (M&A and PE) announced in the first half of 2008 was $24.62 billion as against $50.75 billion and $19.4 billion during the first and second half of 2007 respectively, Grant Thornton said.
There were 458 deals in the first half of 2008 (M&A and PE), as compared to 530 deals and 340 deals during the same period in 2007 and 2006 respectively.
