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Q2 2017 UK M&A set to decline as global activity remains strong

The UK Government’s intention to trigger the Article 50 process of leaving the European Union (EU) by the end of March has seen a 2 per cent decline in early-stage M&A activity in the UK in Q4 2016, compared to the same period one year prior. 

This means announced M&A deals in the UK could decline in Q2 2017.
 
That’s according to the latest Intralinks Deal Flow Predictor, an accurate forecast of future mergers and acquisitions (M&A) announcements.
 
“Uncertainty around the government’s exit strategy with the EU is likely to have a chilling impact on inward investment and M&A activity over the two-year negotiation period. This is being reflected in declining early-stage M&A activity, already unable to maintain the momentum that saw a seven per cent post-Brexit-vote jump in Q3 2016,” says Philip Whitchelo (pictured), VP Product Strategy and Marketing, Intralinks.
 
According to the latest Intralinks Deal Flow Predictor, early-stage M&A activity in Europe, the Middle East and Africa (EMEA) increased by 9 per cent, with the strongest performing countries France (up 28 per cent), Spain (up 24 per cent), Germany (up 17 per cent) and Italy (up 15 per cent). Europe’s largest M&A market, the UK, was a notable exception, declining by 2 per cent. The top three EMEA sectors for YoY growth in Q2 2017 M&A announcements will be Consumer & Retail, TMT (Technology, Media and Telecoms) and Energy & Power.
 
Year-over-year (YoY) growth in early-stage M&A activity in Q4 2016, which is an indicator of M&A announcements in Q2 2017, grew by seven per cent globally – showing early indications that 1H 2017 is set to be a new record annual first half for M&A announcements. The increase in activity was driven by increased numbers of early-stage transactions in three out of the four global regions: Asia Pacific (APAC, up 44 per cent), Latin America (LATAM, up 11 per cent) and EMEA (up 9 per cent). In North America (NA) early-stage M&A activity declined by 5 per cent.

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