Accountants most optimistic as corporate finance bosses predict year of deal making ahead despite Brexit

Corporate finance specialists in Scotland expect to be busier with deals in 2018 than they were this year, according to a poll carried out for the accountancy body ICAS, in conjunction with wealth management firm Brewin Dolphin.

The survey was based on responses from just over 50 senior individuals in corporate finance, including accountants, lawyers, bankers, private equity specialists and advisers.

Of those who took part in a survey, with thirty per cent are based in East and Central Scotland with a further 28 per cent based in the West of the country.

The remainder are spread between London and the north of Scotland with a small proportion in the rest of England.

The optimism expressed by the dealmakers and advisers comes despite the many potential factors that could have a negative effect on the corporate finance market, with a hard Brexit at the top of the list of perceived risks.

Half of respondents expected to be busier next year, with 12 per cent expecting to be less busy and 38 per cent “about the same”.

Of all the professions questioned, accountants where the most optimistic, with 62 per cent expecting a busier year ahead.

In contrast, only 27 per cent of lawyers are expecting to be busier in 2018.

Large firms (those with more than 30 partners or directors in corporate finance) were slightly less optimistic (37.5 per cent expected to be busier and 25 per cent less busy).

Medium-sized firms (6-30 partners/directors more so (53 per cent busier and 35 per cent less busy) and small firms (fewer than six partners/directors in corporate finance) were also optimistic (50 per cent busier versus 9 per cent less busy).

In terms of the balance between optimistic (“busier”) versus pessimistic (“less busy”), firms differed depending on which markets they operate in:

Scotland

+34

Rest of UK

+33

Continental Europe

+40

Overseas - other

+37

Overall, respondents said the airline sector is likely to see the most activity in 2018 followed by healthcare and pharmaceuticals, telecoms and technology, financial services, and utilities, energy and extraction.

ICAS CEO Anton Colella, said: “The results of our survey capture the positive mood of corporate finance as we head into the new year.

“Despite the threat of disruption that the sector faced in 2017 – from the possibility of a hard Brexit to the volatility of President Trump – our captains of corporate finance have managed to set a course through the storm.”

The risks with the greatest potential to impact the market negatively were identified as: