M&A activity shows no sign of diminishing in 2008 as companies are awash with cash to push through deals, new research has found.

The report by professional services firm Towers Perrin and conducted by Cass Business School, found that the period directly after an M&A boom, in this instance 1990 and 2000, delivered higher shareholder value compared to deals completed in the upswing and peak period.

Mark Arian, principal and co-leader of Towers Perrin’s global M&A consulting practice said: “It appears that 2007 was the peak year of the current merger wave, suggesting 2008 remains a good time to proceed with a deal.”

The study revealed that companies have created rather than destroyed value in the current deal wave, in contrast to the prior two cycles. “All the evidence indicates this trend will continue, suggesting that the post-peak year in the current merger wave will also add value” added Arian.