UK Set to Remain Strong Place for Investment

UK Set to Remain an Attractive Investment Destination Post-Brexit

Investors have indicated that the UK will remain as attractive as an investment destination post-Brexit as it was before the referendum on EU membership.

A survey of 300 executives from businesses doing deals ranging from $70m (£53m) to $700m by law firm Stephenson Harwood found that just one per cent said they were not planning on doing a deal in the UK in the next two years because of Brexit.

But crucially the poll found that eighty eight per cent of respondents said the UK remains at least as attractive as it was in spring 2016, while 32 per cent say it is more attractive as an investment destination.

Sixty per cent say they are expecting to complete at least one UK deal in the next two years, while thirty per cent say they would consider a deal if the right opportunity came up.

The top three reasons given for the UK remaining an attractive market were quality of technology and intellectual property, macro-economic stability and a skilled labour force.

UK M&A has remained strong with the value of deals involving a UK business in the first half of 2018 increasing by 58 per cent compared to the same period in 2017, hitting a total of £147.4bn (£115.5bn).

On the equity capital markets there were 103 listings in London in 2017 raising £11.2bn, up from 81 raising £5.99bn in 2016.

Head of corporate finance at Stephenson Harwood Duncan Stiles said: “This report reflects our own experiences and confirms investor confidence in the market. We continue to see strong levels of deal activity despite the uncertainty surrounding Brexit.

“It’s a really encouraging landscape. The investors that we surveyed clearly see the UK as assisting their growth and talent agendas.”

Such a strong endorsement for UK investment should be welcomed as we move into a period of independence from the EU; it shows that despite concerns, the UK will maintain its strong economic foothold in the global economy.