M&A Growth gives the corporate sector a positive forecast
SA Law’s corporate team is currently enjoying one of its busiest years to date, and 2017’s dance card is already looking quite full. But how does this sit alongside some reports that Brexit, and other factors, have dampened this sector?
Despite growing political uncertainty, Ernst & Young’s 15th Global Capital Confidence Barometer reports that more than half of companies surveyed expect to actively pursue deals in the next 12 months. It also states that more than 90% of executives expect the M&A market to improve or remain stable over the next year. This positivity shifts the focus to an upward trend in deal making, which is certainly encouraging.
Our clients seem to be focused on growth and development. We’ve noticed that sector lines are becoming increasingly blurred as companies look to make connections with other industries and this change has become an important part of the M&A landscape. When a company looks to move its acquisition focus, this shifts the goalposts of M&A activity and helps to diversify the sector so creating opportunities where they may not have previously existed.
There is no doubt that Brexit has created uncertainties such as currency fluctuations and reduced trade flow but company executives seem to be taking advantage of other opportunities created by this uncertainty by looking at alternative ways to increase growth and revenue.
Industry research suggests that the retail, digital media and technology sectors are top of the list when it comes to a positive deal focus for 2017 with the oil and gas and renewables sector not too far behind.