Some examples of opportunities for vendors and acquirers include:
- for overseas companies looking to break into the UK market, recent currency movements make UK companies more attractive takeover targets than they might otherwise have been
- equally, in relation to listed companies whose share price has fallen in the wake of Brexit, potential acquirers might well see this as an opportune time to launch a takeover approach/bid
- UK companies might decide to acquire overseas companies which allow them to access to non EU customers. Equally, acquiring an EU based company would potentially overcome other obvious challenges.
The UK mergers and acquisitions market remains relatively active and, for those companies which are unlisted, takeovers and mergers are predominantly covered by English contract law which will not suffer much impact from Brexit. Additionally for listed companies, the UK takeover code will apply and any changes are unlikely to affect the code to a huge degree.
Existing sale and purchase agreements will need to be examined to check on the inclusion of any references to the EU and the EU legal framework.
In summary, Brexit is likely to lead companies to review their strategic plans but is likely to create numerous opportunities for UK mergers and acquisitions.
The next step
If you are considering a possible merger or acquisition opportunity, or would like to discuss the implications of Brexit on the future of your business, please feel free to contact me – or contact your usual UHY adviser.