The second edition of Deloitte’s US/UK M&A Deal Monitor follows trends and analyses underlying driving forces in the most active merger and acquisition arena in the world economy today. Against a backdrop of falling global M&A volumes and deepening uncertainty due to the slowdown in the Chinese economy and the UK’s referendum on EU membership, the US/UK M&A deal corridor has remained strong.
- US/UK deal volumes are down between 2015 and 2016, however when compared to global M&A deal volumes, the US/UK corridor compares favourably.
- The UK’s vote to leave the EU has unsurprisingly contributed to more uncertainty, stalling some UK M&A activity in all locations, however we are expecting extreme volatility to be short lived and the drivers of the US/UK M&A corridor (private equity, TMT sector focus, alternative lending) will likely remain intact.
- The rapid evolution of the TMT sector is driving US/UK M&A deal flow, and California remains the primary location for UK outbound M&A.
- The growth of ‘alternative lending’ funds in the US and UK is propelling the M&A market and this financing remains key to the M&A flow.