The appetite for growth among UK businesses appears strong as new research reveals the majority of tech companies expect merger and acquisition (M&A) activity to grow over the next 12 months.
According to a survey by law firm Browne Jacobson of more than 380 C-suite leaders across a variety of tech sectors in the UK and Ireland, 59% of respondents expect the volume of M&A deals to increase, while more than a third (39%) expect a significant surge in the next year.
Though macroeconomic conditions in recent years have led to muted expectations among many, sentiment on growth in the tech sector seems to be looking more positive, with 51% of respondents believing the industry would see the highest level of inward investment compared with other sectors.
The overwhelming majority (86%) anticipate heightened interest and investment from private equity and 89% feel digital transformation efforts, notably the integration of AI, will be a key driver in funding and M&A deals.
“I am encouraged by the findings from our technology sector respondents,” said Anthony Nagle, partner and head of technology at Browne Jacobson.
“It’s clear that the appetite for growth and innovation remains strong, despite the complex global backdrop.”
Factors including international trade complications driven by US tariff policy as well as intense geopolitical conflicts are expected to remain challenges despite the positive outlook.
Browne noted that “successful dealmaking increasingly hinges on the ability to anticipate regulatory and trade friction and to structure transactions in ways that build long-term resilience as well as short-term value”.
Register for Free
Bookmark your favorite posts, get daily updates, and enjoy an ad-reduced experience.
Already have an account? Log in
