Global dealmakers are not paying attention despite Brexit challenges. The UK is still attracts many investers and the country remains the most favoutite place in Europe to invest, according to a survey by Ernst & Young.
Business executives from around the world ranked Britain third behind the United States and China as the top investment destination, ahead of Germany and France, the New York-based consultancy said in its Global Capital Confidence Barometer report.
“The UK is home to the most important assets sought by dealmakers — technology, talent and intellectual property — so it always has been and always will be a major player”, said Steve Krouskos, EY’s global vice chair of transaction advisory services.
While the UK briefly fell to fifth place in the same survey a year ago because the uncertainty that followed Brexit, it snapped back in part because currency changes made targets cheaper.
M&A activity worldwide will only get busier in the coming year, according to the consultancy, which surveyed almost 3,000 executives across 43 countries. Fifty-six per cent of respondents said they are planning a deal within the next 12 months and more than half expect the greatest competition in M&As will come from private-equity firms.
“Brexit creates some uncertainty, but fulfilling strategic growth needs rather than nationalism will drive deal sentiment”, Mr Krouskos said.