Dealmakers are confident that Britain’s decision to leave the single market and head for a “Hard Brexit” won’t impact cross-border M&A activity with UK targets, according to a study carried out by Intralinks.
However, the Deal Flow Predictor, which reflects the viewsof 440 global dealmakers, also reveals that the UK Government’s intention to trigger the Article 50 process of leaving the EU saw a 2 per cent decline in early-stage M&A in the UK in Q4 2016 compared to the same period one year prior.
This means announced M&A deals in the UK look set to stall in 2017.
“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 percent post-Brexit-vote jump in Q3 2016,” says Philip Whitchelo, VP product strategy and marketing, Intralinks.
