Corporate Finance: 2019 Review and What to Expect in 2020
Posted by James Thompson
2019 Review: 2019 was another strong year for the Corporate Finance market. As MHA Tait Walker states, at times it has been an unpredictable and slightly 'nervous' market place, but this hasn't stopped deals from completing. Based on 2019 Q3 deal statistics, 2019 saw an approximate 16% increase on 2018 levels across disposals, mergers and acquisitions, and development capital and fundraising. Despite the challenging deal environment that presented itself in 2019 for corporate financiers and invesment bankers, deals remained robust across certain sectors including Consumer, Healthcare and TMT. The same can be said for the recruitment side of the Corporate Finance market - the past year has undoubtedly been challenging and unpredictable at times, but all in all, the market has flourished. Here at Pro-Finance, we did see a few Corporate Finance boutiques postponing their recruitment processes, but these were mainly smaller clients who were at greater financial risk. Overall across all firm sizes, figures to date show that recruitment activity levels have been maintained, which has been fuelled particularly by UK companies seeking international opportunities. 2020 Prediction: The uncertainty of recent years will hopefully cease now that the near future of the British Government has been determined, with the General Election giving a majority to the Conservative Party. With the end in sight and the deadline for Brexit fast approaching, we predict that economic conditions will improve allowing businesses to grow and develop, and private equity investments will increase alongside the UK's political and economic state. This is reaffirmed by Adam Avigdori, co-founder of BlackRock Income and Growth Trust - "The employment market is strong, with underlying growth in both nominal and real wages for the first time in recent years. Combined with increased fiscal spending, we believe the UK economic outlook is more encouraging". The speed of Corporate Finance transactions are also likely to increase in the coming year as the UK has remained attractive for foreign investors, but the fluctuation of the pound inevitably slowed down deals in 2019. With economic stability this is expected to improve, and the volume of new deal opportunities as well as the time taken to close transactions will improve over the course of 2020. Here at Pro-Finance, we have seen a rise in demand for specialised Corporate Finance professionals within a range of different sectors. This is the case across investment banks, boutique firms and large accounting firms. We have also seen a growing need for experienced senior M&A professionals, as well a continued demand for Transaction Services professionals at all levels of experience from Associate all the way up to Director, which we will see throughout this year as well. The smaller boutique firms who postponed their recruitment last year as a result of political and financial uncertainty have picked up their search for talent right away in 2020. Despite the European trading impact of Brexit being unknown, these firms have resumed their recruitment activity - we predict that lively January is a sign of things to come in the Corporate Finance market this year. For more information on this article, or to speak to James Thompson about your recruiting needs or opportunities in the Corporate Finance market, contact him on 020 7269 6365 or firstname.lastname@example.org.