Mergers and acquisitions activity “rocketed” in the third quarter of the year.
BDO Corporate Finance’s latest PCPI/PEPI index found a “remarkable uptick” in volumes in the period with a 36% rise in trade deals from 296 to 404 and a 32% rise in private equity acquisitions from 81 to a five-year high of 107.
The firm said the strong levels of activity reflected “pent-up demand” among buyers after a lacklustre first half in 2014.
Director Neil McGill said: “Whilst we are seeing capital markets take a pause for breath, the appetite for deals in the private company arena are undiminished.
“There is a lot of cash chasing good quality deals, and private equity funds continue to take advantage of the excellent conditions during 2014.
“As expected, last quarter’s low trade deal volumes have proved to be an anomaly and they have risen back to normal historical levels.
“We continue to see good businesses receiving frequent inquiries from potential buyers,” he added.