Despite Brexit uncertainty BDO shows record number of deals

Sheffield’s Credit Style acquired by PE specialist
Credit: Shutterstock.com/ YURALAITS ALBERT

Amongst Brexit uncertainty the corporate finance team at accountancy and business advisory firm BDO UK has had a record year of deals, completing 300 transactions in 2017 with a combined value of more than £18.5bn.

Deal volumes for BDO have grown 23% from 243 in 2016 to 300 in 2017, while deal value increased to £18.5bn in 2017 – a 50% increase on the £12bn total last year and a 12-year high for the firm.

Transactions involving private equity also increased by more than 50% from 79 deals (2016) to 120 (2017), with deal flow looking strong as PE houses continue to deploy funds in the market.

BDO’s M&A team completed 80 deals totalling £1.15bn, with the highest proportion of transactions being in the leisure, manufacturing and technology & media sectors. Transaction services deal volume has increased more than 50%.

Chris Grove, Head of Transaction Services at BDO in the UK, said: “We have had a phenomenal year across our transaction services and M&A businesses. We continue to invest in our team here in the UK and our member firms across the globe are also looking to grow.

“Despite the apparent political and economic uncertainty, demand for transactions remains high and our clients are pursuing their growth ambitions with vigour. The appetite for quality assets is driving a strong deal pipeline.

“Prices are holding up and the UK is seen as a destination of choice for many overseas investors, with the fall in sterling seemingly outweighing the risks of Brexit uncertainty. The large amount of private equity funding, liquid debt markets and cash rich corporates means demand for good quality assets continues to outstrip supply.”

Across BDO’s international network, more than 1,200 transactions with an aggregated value of USD $40bn have been completed in the last year.