UK M&A falls to four-year low

The number of mergers and acquisitions in the UK has fallen to a four-year low during the first three months of the year, while flotations have had their strongest start since the peak in 2007.

The Daily Telegraph reports that despite all the right ingredients for dealmaking being present – an uptick in the economy, available financing and growing confidence – deal activity has remained sluggish.

Anthony Gutman, co-head of UK investment banking at Goldman Sachs, said: 'One of the constraints in the first quarter has been the strength of the initial public offering (IPO) market.

'A major component of M&A volumes comes from private equity and those portfolio companies that would traditionally be sold are being floated. Across the sectors, companies are achieving a premium in IPOs compared to sale'.

Investment bankers in M&A departments have felt the pinch as fees from advisory work on completed deals fell by almost a third to $265.5m, the lowest year to date since 2003, according to data from Thomson Reuters.

To access the complete Daily Telegraph article hit the link below:

M&A at four-year low as cash floods into flotations

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