Due to a global economy which loses momentum there are currently less mergers and acquisitions (M&A). The “ZEW-ZEPHYR M&A-Index” closed at just 117 points in June 2008. Back in December 2007 it still stood at 142 points. Even though the index is currently still above its initial value of 100 points in January 2000, it was well below its long-term mean value of 125 points in June.
This relatively low index value is due to the repercussions of the global credit crisis. Therefore analysts also expext the index to continue falling over the months to come. Even though many businesses could currently be bought at low prices, the uncertainty about economic prospects and the turbulences on the financial markets slow down M&A activities worldwide.
The “ZEW-ZEPHYR M&A-Index” which is calculated each month by the Centre for European Economic Research (ZEW) in co-operation with the (BvDEP) is based on both the number and the volumes of mergers and acquisitions wordwide which are registered in the ZEPHYR database by BvDEP.