It seems the Boris Bounce really is a thing.
PWC reports the UK’s attractiveness amongst global CEO’s is at its highest level since 2015. The IMF is forecasting the UK to grow faster in 2020 than the Eurozone. And the CBI expects the biggest surge in confidence for many years.
January PMI data is also in positive territory, recording its highest levels of industrial output for 16 months. This followed news earlier in the week of yet another fall in unemployment as the British jobs’ miracle continues.
The anticipation of increased spending by the Chancellor in his March budget, backing up the Government’s ‘Global Britain’ slogan, is also helping to push growth expectations well ahead of where they were just six months ago.
It was only last summer that foreign direct investment into the UK fell to its lowest level for six years, with the FT suggesting political uncertainty, along with stalemate over Brexit as the main reasons. How times change.
Our new ‘normal’ will not be one of economic paralysis. So, what does this all mean for acquisitive UK businesses wishing to take advantage of these opportunities? Well:
-Companies need to be ready for this change of pace;
-Investment banks, already reporting a wall of money making its way into the UK, are in search of public and private company assets. A lot of this capital will also find its way to P.E. and V.C. investors who will not want to be left behind;
- Businesses should, therefore, dust off those strategic growth plans they filed away when Theresa May lost her Parliamentary majority in 2017 and should update them;
-Be sure you have the best people to search out those opportunities;
-Ensure you have the capability to carry out confidential due diligence exercises on potential targets and funding options; and
-Make yourself attractive to funders by tidying up any skeletons in your cupboards that may have maybe been left unresolved.
There are some wonderful opportunities awaiting ambitious businesses right now. But they don’t deliver themselves. At Representation UK, we can help you capitalize on these opportunities. Call or email for a confidential chat.
Andrew Lindsay 07787525469
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