Does UK plc need protecting?

Theresa May has intimated that inbound M&A will be more closely monitored under the new government.

Post-Brexit the mood within the market is generally upbeat.

“We felt a bit bleak in the immediate aftermath of the vote, but over the past four or five weeks, people have appreciated that the world has not ended,” says Jeremy Furniss, partner at corporate financier Livingstone. 

Furniss notes that the vote may have helped “take some of the heat out of the market” at a time in which multiples were creeping up to uncomfortable levels.

What is most notable since the vote, however, is that the vast majority of deals have been completed by overseas, largely strategic, buyers. UK companies, already a fertile shopping pool for overseas strategic buyers, became ten to 20 per cent cheaper overnight for dollar-denominated bidders. 

“There have been some deals where a level of opportunism from American buyers has set in,” says Furniss. “Where transactions were well underway prior to the vote, that has added impetus for getting the deal done.”< Foreign investment played an important role in bringing the UK out of the last recession and resuscitating the M&A market. It would be foolish to chase away deep pools of capital by adopting a protectionist stance at a time of such uncertainty.  Click here to read the full article. (Subscription required)

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