Dealmaker confidence surges as UK economic outlook improves and M&A activity rebounds.
UK M&A advisers are highly optimistic regarding the near-term economic climate, at least according to a new report by CIL Management Consultants. In October 2024, 48% of dealmakers believe it is a good time, surging 29 percentage points from a mere 19% at the start of the year. Contributory factors for this turnaround are reckoned to include easing interest rates and the political stability forecast as a result of the possible new Labor Government.
The study, which interviewed 138 market stakeholders-from private equity investors to corporate finance providers-reflected a rebound in M&A activity. Indeed, 28% of the respondents reported high or average deal activity, whereas just 15% had responded in this manner during 2023. What's more, 24% rated their assets as excellent, good, or average, while 55% expect improvements in asset quality.
76% expect higher levels of M&A activity over the next 12 months, while 18% anticipate that they will stay stable. Commenting on the survey, Alex Marshall, CIL's senior partner said, "This is the strongest positive attitude recorded since the post-COVID M&A spurt of 2021. The steady and increasing pattern in both deal flow and asset quality reflects cautious optimism within the business and investment communities."
Going forward, indications from this study present a bit of hope that mergers and acquisitions could provide the foundation for a robust future for the UK in times to come when the economy would find its feet.
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