Rob Baxter, UK Head of Corporate Finance at KPMG, commented:
“For any investor, and particularly in dealmaking, confidence is king. The perfect storm of economic and geopolitical headwinds, rising interest rates, high inflation and the cost-of-living crisis have prompted more caution. Tighter credit conditions also mean a higher cost of debt for those seeking debt funding, and it’s driven lenders to be very selective, operating with greater scrutiny.
“However, deals are still getting done, both in the UK and cross-border involving British businesses, with activity taking place predominantly in the energy, business services and technology sectors. While uncertainty is no friend of M&A, the building blocks for deal activity are still very much present.”