KPMG sees more M&A activity in Germany

The firm is moving 20 people into its German Transaction Services division.

KPMG Transactions Services has expanded its German operation with a number of staff from its London office. The move is to ready the firm for the increase in corporate activity that is expected over the next few years.

Two partners, Stephen Smith and Maggie Morrissey, along with 18 managers have been moved, reports eFinancial News, which takes the total number of staff working for the group in Germany to around 200.

Smith’s experience is in demergers, acquisitions and disposals, while Morrissey deals with private equity deals, in particular cross-border transactions.

As asset prices continue to fall, it is predicted that a greater number of deal opportunities for private equity firms will emerge, especially in the buyout market as large corporations find they have to sell subsidiaries because of weakening balance sheets and cash flow management issues.

It is with this in mind that KPMG has grown its Transaction Services Group in Europe’s largest economy. The firm describes the Group’s role as one of identifying and evaluating the risks and benefits associated with deals at a corporate level.

Smith said M&A activity in Germany would pick up because of the tax changes due to come into effect at the start of 2002, and because there is an increasing number of German businesses looking to become global operations.