A so-called Brexit at next week's U.K. referendum is likely to dent to mergers and acquisitions (M&A) in the country and could lead to talented financial professionals leaving the City of London, according to new research.
The new report, published Thursday by specialist financial consultancy The M&A Advisor, states that dealmaking in the U.K. has already been affected by the June 23 vote and outlines a number of possible outcomes if citizens decide to opt out of the European bloc.
"After a record year of domestic and foreign M&A investment in the U.K., we have witnessed slowing deal flow over the past six months with (first-quarter 2016 private equity/venture capital) volume at a paltry 500 transactions compared to over 800 one year earlier," David Fergusson, the Chief Executive and president of The M&A Advisor, said in statement alongside the report.
"(The second quarter) of this year saw volume slide to under 300. This is a dramatic change of events and the threat of an EU exit by the U.K. is at the center of it."