Brexit fears prompt slowdown in management buyouts, report says
The number of management buyouts fell over the last year amid Brexit-related uncertainty, a report shows.
Accountancy firm Moore Stephens said there were 80 MBOs in the year to June, down by 7% on the previous year and down by a fifth since 2014/15.
Potential buyers and vendors have been more cautious because of growing concern over Brexit, said Moore Stephens.
Spokesman Jamie Johnson said: "Deals thrive on certainty, something that is in very short supply as the UK approaches Brexit.
"A growing number of potential buyers and vendors are deciding to wait out this period of uncertainty, instead of taking the risk of an MBO.
"Even some industries that have always been popular for private equity buyers, like the leisure sector, have seen significant slowdowns in interest. Caution is the order of the day."