The low commodity prices are having a big impact on mergers and acquisitions (M&A) activity, owing to playing such a critical role in determining deal values, professional services firm KPMG partner Jamie Samograd, who focuses on mining in the deal advisory practice, tells Mining Weekly Online.
“[Commodity prices are] critical in determining the deal price, or the seller and buyers’ view of what the deposit’s value in the future might be, as well as what the value of the reserve in the ground might be. For these reasons, one is increasingly seeing deferred payment of consideration in some of the deals,” he said in a recent interview.
