With the Brexit Clock Ticking, How is the M&A Market Faring?

With just under 40 days until Britain is set to leave the EU, doom and gloom is forecast as a potential no deal Brexit looms.

But, when it comes to M&A activity, this is not necessarily the case, as the political environment is doing little to dampen enthusiasm for M&A.

The following are why the UK M&A market is exceeding expectations:

Businesses are acting now, before it’s too late – rather than waiting for international tensions to resolve, buyers are acting now. In all industries, buyers are acquiring to remain relevant in an uncertain climate.

Buyers are dealing with uncertainties accordingly – the worst case scenario of a no-deal Brexit is being assumed and the M&A market is adjusting to this. As such, domestic transactions in the UK are increasing to address strategic gaps in order to become as strong as possible in advance of Brexit. As well, there is an increasing trend of UK companies looking at transatlantic deals.

Current environment for buying – low interest rates and the availability of cheap debt, along with companies looking for cost synergies, has created the perfect environment for M&A. This is highlighted by high profile transactions, such as Comcast’s acquisition of Sky and Vodafone’s acquisition of Liberty Global.

Brexit, surprisingly, has had a positive effect on M&A. This, coupled with factors that have been spurring the market such as buyers looking to acquire technological advances, has helped to stimulate activity.

WE ARE READY WHEN YOU ARE

Call Benchmark International today if you are interested in an exit or growth strategy or if you are interested in acquiring.

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