More M&A experts think Brexit vote could spark overseas interest in UK firms

William Turvill
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Nearly a quarter of those surveyed by Deloitte think the Brexit vote could create UK company investment opportunities (Source: Getty)

Nearly a quarter of mergers and acquisitions (M&A) partners and dealmakers at Deloitte believe the Brexit vote could boost UK inbound activity.

When Japan’s SoftBank announced a £24.3bn deal for UK chip maker Arm, some M&A experts suggested that British companies could become attractive takeover targets post-Brexit vote, with the pound’s value falling against the dollar. And analysts are tipping other firms, such as broadcaster ITV, to attract overseas attention.

Read more: Why slashed interest rates could provide another M&A boost after Brexit

A poll of 52 M&A partners and dealmakers at Deloitte, conducted in July and published today, asked whether they believed there are “opportunities and bargain deals in the UK market”.

While 71 per cent said they were adopting a “wait and see approach”, 23 per cent said there were.

Iain Macmillan, global head of M&A at Deloitte, said: “Companies will have to uncover ways to create value in what is likely to be a lower growth macro-environment, and M&A is a core tool that can help achieve that. Overall, conditions remain favourable for dealmakers. These include cheap financing from a low interest rate environment, record levels of corporate cash reserves and private equity dry powder, as well as pressure on revenue growth.

Read more: Why UK M&A activity is on the rise despite Brexit vote fears

“Indeed, we have already seen a number of opportunistic acquisitions of UK businesses from foreign buyers go through since the end of June.

“Not only does the UK have a significant domestic M&A market but London plays a crucial role in funding corporate and private equity M&A activities globally.”

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