The value of merger and acquisition (M&A) deals between UK companies has reached a thirty year low since Britain voted to leave the European Union.
According to data from Thomson Reuters, M&A value dropped 62 per cent since the June 23 referendum. The lack of larger deals is partly to blame, with no single domestic M&A deal over the value of US$1 billion being announced since the Brexit vote. The last time this occurred during the same period was in 2001.
The report shows that:
Domestic deals in Britain since the June 23 referendum have totalled just $1 billion.
Foreign purchases of British firms have also slumped 69 per cent, despite a sharply weaker pound.
It goes on to explain that the figures stand "in contrast to a burst of dealmaking in the United States and the rest of Europe, which has lifted bankers' hopes for a Christmas fee bonanza after an otherwise mediocre year for M&A globally."
On a more positive note, a separate survey by Investec Wealth & Investment [1] shows that M&A activity in the UK is expected to increase over the next two years amongst small independent financial advisory firms.
At Beavis Morgan, we have also acted on a significant number of M&A deals for SME and owner-managed businesses and are able to assist in both the buying and selling of businesses.
For further information about how we can help you achieve your business ambitions, contact Paul Ashton or your usual Beavis Morgan Partner.