Biggest M&A splurge in more than a decade
Britain has had its strongest first quarter for mergers and acquisitions in more than a decade, as domestic and crossborder activity speeded up.
A report out today reveals that 681 deals worth a total of $120 billion (£85bn) were struck between January and March this year, well up on the final quarter of last year, when firms secured 586 deals worth $51bn (£36bn).
However, it is shy of the $147bn (£104bn) and 1,045 transactions seen in the first three months of 2007, the “high water mark” for British M&A activity, according to the research from accountants EY.
Ally Scott, EY’S head of corporate finance in Scotland, hailed the “positive start to the year” for UK deals.
He said it demonstrated overseas investors continued to find UK companies with an international presence attractive, and UK businesses were still making international deals.
Scott added:“evidence of the attractiveness of Scottish businesses to international investors has built momentum in recent months and looks set to continue.
“Those with access to global markets and the knowledge of how to capitalise on M&A opportunities will be best placed for successful outcomes.”
The EY report said that, at a sector level, telecoms ($44.6bn), cars ($18bn) and healthcare ($13.5bn) had the highest transaction values.
Computers and electronics along with professional services saw the most deals, accounting for 151 and 105 transactions respectively.