Investors: UK To Remain Attractive As An Investment Destination After Brexit

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Photo by Michael Duxbury via Flickr

Investors believe that the United Kingdom will still remain as attractive as an investment destination after Brexit as it was before the referendum on its membership with the European Union.

In a survey of business executives, eighty-eight percent of the respondents said that the United Kingdom continues at least as attractive as it was in spring 2016. 32 percent say that it has become more attractive as an investment destination.

The top three reasons that were given for the United Kingdom remaining an attractive market were macroeconomic stability, a skilled labour force, and the quality of technology and intellectual property.

The respondents of the said survey were 300 executives from businesses that are doing deals that range from $70m (£53m) to $700m. It was conducted by Stephenson Harwood, a law firm. It discovered that only one percent said that they were not planning on doing a deal in the United Kingdom in the next two years due to Brexit.

Sixty percent say that they are expecting to complete at least one deal in the United Kingdom in the next two years, while thirty percent say that they would be considering a deal one the right opportunity came up.

The M&A of the United Kingdom has continued to strong with the value of deals that involved a UK business in the first half of this year. It increased by 58 percent as compared to the same period during the previous year, reaching a total of £147.4bn (£115.5bn).

On the equity capital markets, there were 103 listings in London last year raising £11.2bn, which is up from the 81 raising £5.99bn in 2016.

Duncan Stiles, the head of corporate finance at Stephenson Harwood, stated: “This report reflects our own experiences and confirms investor confidence in the market. We continue to see strong levels of deal activity despite the uncertainty surrounding Brexit.”

He added: “It’s a really encouraging landscape. The investors that we surveyed clearly see the UK as assisting their growth and talent agendas.”