As global dealmaking hit a three year low with the first three quarters of 2016 showing a 22% drop on 2015, the UK market has “paused for breath” post-Brexit. It seems that few corporates wish to take a risk on assets until the UK’s new relationships with its trading partners are agreed.
The referendum outcome has clearly had a material impact on the buyout market with the numbers reflecting a significant decline in megadeals in the wake of the Brexit vote.
However, the early signs are that the UK economy is holding up well and with many “baby boomers” looking to exit businesses and private equity houses awash with cash we expect Quarter 1 of 2017 to return to normal levels of activity. Certainly the benefits of lower sterling should increase the level of interest from overseas buyers.