Why clarity in the eurozone will boost M&A activity

Invesco Perpetual fund manager, Jonathan Brown, on why he expects a pick up in M&A activity in the smaller companies sector next year.

Managing a UK smaller companies fund over the past year can perhaps best be described as “dodging the bullets”. On average, for every upgrade in smaller company profit forecasts, there have been two downgrades and plenty of profit warnings along the way - although thankfully not too many across our funds. Deteriorating trading conditions, fuelled by the slowdown in global growth and uncertainty over the eurozone debt crisis, have driven equity markets lower. Inevitably, UK smaller companies, given their sensitivity to economic growth, have not escaped the trend. Year to date the Hoare Go...