The record cash piles of private equity firms, prevalence of debt-to-finance deals, relative cheapness of sterling and the fact US companies have substantial trapped overseas cash balances all suggest M&A will become an even more prominent theme in 2017 than 2016.
“Although there were, on average, more than two deals per week with a transaction value of more than £100m in the six months after the Brexit vote, the frequency for mergers has now stepped up a gear,” said McGarry.
“In late February, Kraft Heinz made an unsuccessful US$143bn merger proposal with Unilever.
“Barely a week later, Aberdeen Asset Management and Standard Life announced plans to merge.
“Then came troubled FTSE 250 housebuilder Bovis receiving competing bids from fellow FTSE 250 constituents Galliford Try and Redrow.”
