DEAL APPEAL

How attractive is the UK now for the world's deal-makers?

Is it time to look beyond the headlines?

Welcome to Deal Appeal, our report on investor attitudes towards the UK as a deal-making destination.


As an international law firm, we have witnessed, and been involved in, continued strong deal activity in the UK over the past few years. Given the growing negative headlines about investor sentiment as the Brexit negotiations continue, we wanted to find out more about how executives really feel about investment prospects in the UK.

This time last year, Stephenson Harwood published its Deal Appeal: Why the UK remains enticing on a global stage report. We surveyed domestic and international investors to understand their attitudes towards the UK as a deal-making destination.

The results were highly encouraging and supported our own experience of there being a strong pipeline of deals, despite some of the negative headlines around investor sentiment towards the UK in light of uncertainty around Brexit. Investors were looking beyond short-term volatility, with the UK’s strong rule of law and investor protections important long-term attractions.

The UK's deal-making activity in 2019

It’s clear that much has changed over the past year politically and economically. So to what extent has investor sentiment changed over the past year and how is this affecting deal-making activity?

Download report                                                                                                                                Read our update

Key stats

  • 88%

    say the UK is as, or more, attractive an investment destination as it was pre-referendum

  • 32%

    say it is more attractive than spring 2016

  • Icon

    1%

    of those not planning a UK deal give Brexit uncertainty as a reason

  • 63%

    are attracted by the UK’s skilled and specialist workforce

  • 60%

    expect to complete at least one UK deal in the next two years

  • 31%

    those who aren’t looking at investing in UK who are looking at Asian markets instead

Themes

Hot spot or not?

“The UK is regarded as having a safe and navigable legal system, a strong regulatory environment, good quality assets, a solid economy and, overall, as being a good place to do business – that’s why many Asian investors continue to see the UK in an attractive light.”
Tom Platts,
Partner, Singapore,
Stephenson Harwood

As the fifth largest economy by GDP globally, the UK is home to world-class companies and sophisticated, liquid, capital markets. With a reputation for a dynamic deal-making environment, the country has long held a position towards the top of the global rankings for domestic and cross-border investment activity.

The UK ranked third in the first half of 2018 (behind the much larger markets of the US and China) for completed mergers and acquisitions (M&A) activity by value and volume, while London took the top spot in Europe for initial public offerings (IPOs) by value and volume in Q2 2018.

What does the future hold?

For more information on this, and how the UK compares on the global stage, please download our full report here.

ATTRACTIVENESS OF THE UK AS AN INVESTMENT DESTINATION OVER THE PAST TWO YEARS ACCORDING TO LOCATION OF RESPONDENT
Investment Destination

A gateway to growth and skills

“Asian investors largely view the UK in a positive light. There is a strong recognition here of a robust legal framework that offers investors security. It’s a very well-established market and one that benefits from high-quality legal, corporate finance, consulting and accounting advice.”
Paul Westover,
Partner, Hong Kong,
Stephenson Harwood

Our survey results clearly demonstrate that, for many domestic and international businesses and investors, the UK remains an important deal-making destination.

Yet they also reveal why: respondents see the UK as assisting their growth and talent acquisition. In an increasingly global and digitised economy, companies need access to new products and services, highly skilled people and capital, while also finding innovative ways of doing business if they are to stay ahead of the competition. The UK, our respondents say, is an attractive location to source these, in large part because of the strength of legal and regulatory frameworks and well established corporate finance advisory community.

To find out more about the key attractions of the UK market, download our full report here.

THE RATIONALE BEHIND UK DEALS IN THE PAST TWO YEARS COMPARED WITH THE NEXT TWO YEARS

Is there a Brexit effect?

“Investors in the Middle East take a long-term view. While there is some uncertainty in the short term, most still believe London will be an important financial centre and see the UK as a safe harbour with a legal system they can rely on. It remains a strong market for many Middle Eastern investors strategically.”
Sandeep Dhama,
Partner, Dubai,
Stephenson Harwood

As the UK continues to discuss arrangements for leaving the European Union, there remains a high degree of uncertainty around the eventual outcome.

As a result, it’s almost impossible to gauge sentiment around the UK market without assessing the extent to which Brexit is influencing deal-makers’ attitudes. The high level of sell side M&A reported by respondents over the past two years is likely to be at least partly explained by a wariness about Brexit, although much of this work appears to have been completed, with the proportion of disposals halving for UK deals in the coming two years.

To find out more about the Brexit effect, download our full report here.

WHERE (OUTSIDE THE UK) DO YOU PLAN TO INVEST IN THE NEXT TWO YEARS?

Why is deal appeal so relevant?

Head of Corporate Finance Duncan Stiles provides an overview of why Deal Appeal is topical in today's volatile markets.

To watch the video, please click below.

Watch Video
Duncan Stiles

Related News

28 Aug 2018

FROM NEWS

Stephenson Harwood advises NMC Health Plc on first UK acquisition

Law firm Stephenson Harwood LLP has advised UAE-based private healthcare provider NMC Health Plc on its acquisition of Aspen Healthcare, a UK-based healthcare company. The..
More

31 Jul 2018

FROM NEWS

Stephenson Harwood advises Grit Real Estate Income Group Limited on Lon..

Law firm Stephenson Harwood LLP has advised Grit Real Estate Income Group Limited (Grit) on its London IPO
More

18 Jul 2018

FROM NEWS

Stephenson Harwood advises CGS on fourth fund raising

Law firm Stephenson Harwood LLP has advised CGS on raising its fourth fund, CGS IV, which closed at its hard-cap of CHF240 million.
More

12 Jun 2018

FROM NEWS

Stephenson Harwood advises Bowmark on Instant Group buy-out

Law firm Stephenson Harwood LLP has advised Bowmark Capital on the buy-out of The Instant Group, a global provider of independent flexible workspace.
More

30 Apr 2018

FROM NEWS

Stephenson Harwood ranked top in Q1 2018 Equity Capital Markets report

Law firm Stephenson Harwood LLP has been ranked number 1 law firm, by both deal volume and value, in Perfect Information's 2018 first quarter UK ECM Insight Report on IPOs..
More

15 Mar 2018

FROM NEWS

Stephenson Harwood advises on Augmentum Fintech plc IPO

Law firm Stephenson Harwood LLP has advised venture capital firm Augmentum Capital on the successful IPO of its first listed investment fund.
More

06 Mar 2018

FROM NEWS

Stephenson Harwood advises VR Education on London and Dublin dual listi..

Law firm Stephenson Harwood LLP has advised VR Education Holdings plc, a virtual reality technology company, on its £19 million admission to AIM in London and on the ESM o..
More

13 Feb 2018

FROM NEWS

Stephenson Harwood advises on TruFin's £185 million IPO

Law firm Stephenson Harwood LLP has advised Macquarie Capital (Europe) Limited, as Nominated Adviser and Broker, on TruFin Plc's £185 million IPO and admission to AIM.
More

05 Jan 2018

FROM NEWS

Stephenson Harwood successfully secures CMA merger clearance for HC-One

Law firm Stephenson Harwood LLP has successfully represented HC-One in securing merger clearance from the UK Competition and Markets Authority (CMA) for HC-One's acquisiti..
More

View more news

Our Team

Tom Platts

Partner

T:  +65 6622 9641

M:  +65 8233 3245

Email Tom | Vcard

Office:  Jakarta, Singapore

Duncan Stiles

Partner

T:  +44 20 7809 2163

M:  +44 7768 122 740

Email Duncan | Vcard

Office:  London

View our Corporate team
print-footer
logo
© Stephenson Harwood LLP 2016. Any reference to Stephenson Harwood in this document means Stephenson Harwood LLP and/or its affiliated undertakings. Any reference to a partner is used to refer to a member of Stephenson Harwood LLP.