Brexit not hindering M&A business as activity increases - EY

The value of UK M&A in Q3 of 2016 increased from the previous quarter, despite Brexit uncertainty, according to latest data released by EY.

Overall value for UK M&A reached $78.3bn, up from $25.7bn in Q2, the new figures show.

At the same time the volume of activity saw a slight drop to 705 deals from 719 in the previous quarter. In the first three quarters of the year, M&A value has seen activity worth £159.8bn and 2,252 deals.

According to EY analysis, Q3 saw 189 inbound transactions that generated $31.6bn and 139 outbound deals worth $18.3bn.

This compares favourably to activity in Q2 of 2016, which saw inbound M&A activity raising £13.4bn (191 deals) and outbound deals worth £3.8bn (132 deals). The picture is slightly different on the domestic M&A market with 377 deals generating $6.4bn, when in Q2 396 deals raised $8.3bn.

Ally Scott, EY Partner and head of transaction advisory services (TAS) in Scotland, said: “UK M&A activity seems to have taken Brexit related uncertainty in its stride so far.

“Businesses are getting accustomed to a period of sustained low growth, low interest rates and cheap debt. For M&A activity in Scotland this means there is an increasing number of businesses seeking funding for their growth plans. Private Equity funds are available and inbound investment remains attractive due to the decrease in the value of the pound.

“Overseas investors are interested in Scotland’s innovative businesses particularly in the FinTech and Life Sciences sectors where we can expect most M&A activity to take place in the year ahead.”