Q4 2016 'the perfect end to an active year of M&A'

Mergers and acquisitions deal activity for the final quarter of 2016 reached its highest level since the credit crunch hit in 2008. Businesses are, accountants BDO say, focused on growth despite any Brexit jitters.

BDO’s latest PCPI report revealed that 771 deals were completed during the last three months of 2016, a sizeable 33 per cent jump from the previous quarter’s 578 transactions, and the highest since Q2 2008.

Trade buyers were the most active, with a total of 672 deals, showing confidence about growth despite Brexit looming. Private deals had fallen slightly, but this is not significant and is in line with previous quarters.

Deal values across the board remained high during Q4 2016, with trade paying 10.5x and private equity forking out 11.3x multiples.

It was a good end to 2016, overall. Roger Buckley, M&A Partner at BDO, commented: “Q4 deal volume was the perfect end to an active year of M&A. Demand for good quality assets continues to outweigh supply. Despite concerns around Brexit, economic indicators remain positive and businesses continue to have their sights on growth. We expect deal volumes and values to remain strong for 2017.”

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