M&A activity between the rest of Europe and the UK trebles as CFOs show more optimism on the impact of Brexit has been saved
M&A activity between the rest of Europe and the UK trebles as CFOs show more optimism on the impact of Brexit
18 April 2017
The value of M&A deals between the rest of Europe and the UK has more than trebled, from US$4.2bn in the first quarter of last year to US$13.2bn this year. Deal volumes dropped 11% from 212 deals (in Q1 2016) to 188 this year, according to analysis from Deloitte.
The findings come as the proportion of UK CFOs expecting M&A activity to decrease over the next three years as a result of Brexit went down from 40% immediately after the referendum to 11% in Q1 2017, according to the CFO Survey from Deloitte.
Iain Macmillan, head of global M&A at Deloitte, comments:
“In the coming months, we have major elections coming up in France and Germany, in addition to the ongoing Brexit negotiations. However, dealmakers are getting used to uncertainty as a feature of the M&A landscape. The data shows they are prepared to make bold moves through M&A, rather than wait and watch how the negotiations play out. This shift in attitude is reflected in our latest CFO survey, where only one in ten CFOs now feel M&A will be slowed down by Brexit.
“The UK economy has proven to be resilient and a recent study shows that London remains the capital for fast-growing European companies. Meanwhile, the fall in sterling makes some of these UK-based businesses attractive targets for acquisition. All this bodes well for a strong M&A market and we expect the corridor between the rest of Europe and the UK to remain busy this year.”
Notes to editors
- Additional data on global M&A activity can be found in the latest M&A Index from Deloitte.
- The findings from Deloitte’s CFO Survey 2017 Q1 were published on 3rd April 2017.
- The study referencing London as the capital for the fast growing European businesses is the FT1000 ranking of high-growth groups.
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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The information contained in this press release is correct at the time of going to press.
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