M&A activity between the rest of Europe and the UK trebles as CFOs show more optimism on the impact of Brexit Bookmark has been added
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.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.