Business security

Brexit Boosting Cross Border M&A

Immediately following the monumental UK vote to leave the European Union, many in the dealmaking community thought activity involving UK-targeted firms would slow. But sometimes, distress can be a buying opportunity. Post-Brexit, the UK has witnessed 54 inbound deals worth $38b, which shows that the UK is becoming a more attractive target for overseas investors.

The pound declined sharply after Brexit, leading to two major — and opportunistic — deals involving UK-based companies: SoftBank’s acquisition of Britain’s ARM Holdings Plc and AMC Theatres’ (AMC) acquisition of Odeon & UCI Cinemas Group. In the case of ARM, only a small percentage of its revenue comes from the UK, making it all the more advantageous. Overall, UK inbound deal value stood at $37b in July 2016, which is more than four times the value registered in July 2015 ($9b) and significantly higher than the average July value ($12b) seen for UK inbound deals over the last 10 years.