Research Article
The Impact of Brexit on UK Private Equity Firms’ Activity Based on the Case Study of Private Equity Firms Pre- and Post- Brexit
@INPROCEEDINGS{10.4108/eai.9-12-2022.2327562, author={Yanling Huang}, title={The Impact of Brexit on UK Private Equity Firms’ Activity Based on the Case Study of Private Equity Firms Pre- and Post- Brexit}, proceedings={Proceedings of the 4th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2022, December 9-11, 2022, Chongqing, China}, publisher={EAI}, proceedings_a={MSIEID}, year={2023}, month={3}, keywords={private equity acquisition investment}, doi={10.4108/eai.9-12-2022.2327562} }- Yanling Huang
Year: 2023
The Impact of Brexit on UK Private Equity Firms’ Activity Based on the Case Study of Private Equity Firms Pre- and Post- Brexit
MSIEID
EAI
DOI: 10.4108/eai.9-12-2022.2327562
Abstract
This study has analyzed the impact of Brexit on private equity activity. This paper us-es the Capital IQ database to collect the number of acquisitions and direct invest-ments of nine top British private equity firms in the six years before and two years af-ter Brexit, and uses stata to build a regression model and perform multiple regression analysis. The conclusions show that Brexit has a significant impact on UK private equity firms, but not on direct investment in UK private equity firms. It also discuss-es the impact of Brexit on employment and policy in the private equity industry. Brexit-related factors can have both negative and positive effects on private equity firms. Uncertainties arising from Brexit will harm private equity firms' M&A confi-dence, but the advantage of uncertainty is that it makes the expansion more cautious and Brexit will also allow the UK to reformulate new policies to boost the activity of private equity firms.
