The year to date has seen continued signs of recovery from an M&A deal activity perspective with optimism increasing, albeit cautiously, across the deal community. From our own perspective, we have seen increased levels of confidence in M&A deal flow with our pipeline remaining healthy buoyed by an increase in deals in the energy and renewables sectors.
One interesting dynamic we have witnessed, which appears to have been borne from the greater stability in oil price, is the increase in deal activity by large, cash rich, multinational service companies looking to expand their current service offering.
In addition to this, we are also seeing increased interest from service companies looking into the renewable energy space and technology sectors and anticipate this will be an area of increased deal activity to flow from this later this year and into next.
Looking ahead, the general consensus, from speaking to our client base and fellow advisors for the remainder of 2017, is with market stability brings a more positive environment in which to undertake M&A activity. On the assumption that this continues then there are likely to be opportunities for companies who have been able to adapt to market changes, to be attracting interest.
Callum Gray is a member of the Corporate Finance team at Anderson Anderson & Brown LLP