A new KPMG report on mergers and acquisitions (M&A) has found that agribusiness is the number one sector for deal activity. It found that almost one in five (19%) expect agri to be the most active sector. The report drew findings from a survey which was conducted with many of Ireland’s leading companies and M&A advisers.
It also found that the majority (57%) of respondents expect deal volumes to be higher in 2018. An increase in deal volumes reflects the current relatively positive sentiment about the Irish economy. However, it also noted that Brexit-related risks remain on the agenda. Interestingly, 55% of respondents cite 'avoidable reasons’ for deal failures.
A number of the respondents who took part in the survey noted some migration of capital out of the UK towards Ireland. Only one third (34%) of respondents now expect that M&A activity will be negatively affected by Brexit – last year the figure was almost half of all respondents.
Favourable environment
Commenting on the findings, partner and head of transaction services at KPMG Ireland Mark Collins said: “The current environment continues to be favourable for deal making. This is underpinned by more robust corporate profits, access to capital and lower stock market volatility, all of which contribute to enhanced confidence levels.”
Partner at KPMG Ireland David O’Kelly said that while there continues to be a high degree of uncertainty around Brexit, concerns among executives have eased.