August 18, 2017

Cross-Border: Market Conditions for US & UK Deals

The level of deal flow between the US & the UK makes it the world’s largest bilateral deal corridor – and this Deloitte study on US-UK cross-border M&A activity during the first half of 2017 provides a number of insights into current market conditions.  Here are some of the key themes:

– US dealmaking into the United Kingdom has fallen by almost 15% in the first half of 2017, with several dealmakers pointing to the Brexit effect.

– UK dealmaking into the United States has risen by almost 10% in the first half of 2017, with UK investors keen to secure revenue growth in the United States.

– Confidence over M&A volumes is high in the United States, but more guarded in the United Kingdom.

– Technology sector deals continue to provide most of the volume in the corridor, with companies attempting to capture opportunities in big data and growth in cloud-based services.

– California, New York, and London remain primary locations for transatlantic dealmakers, but US buyer interest in the UK regions outside London is growing.

John Jenkins