The level of announced IPO and M&A deals is well below average today, but according to Goldman Sachs increasing activity is possible as investors become more confident, according to an article on Term Sheet, the Fortune PE blog.
Referring to a presentation made by Goldman Sachs president Gary Cohn, the article says that global M&A volume in 2013 is “artificially low” and only represents around 4% of global market cap, compared to a 20-year average that approaches 7%.
IPO volume is also down to half the 20-year average. There is lots of room for improvement to get back to hundreds of billions that normally flow in global M&A and IPO activity. (Image Source. Goldman Sachs)