Confidence drop for PE-backed businesses in wake of Brexit vote

The survey of 200 decision makers, including 152 working at businesses backed by private equity and venture capital, was conducted by Ipsos Mori for BVCA over August and September. It shows 40% of respondents believe economic conditions have worsened over the past 12 months and nearly half (45%) think they will get worse.

This marks an increase of 30 percentage points in both cases compared with the previous edition of the survey done in March, before the Brexit referendum took place. Just a quarter (24%) of respondents now believe the economy will improve over the coming year, compared with 49% earlier this year.

The future trading relationship between the UK and the EU is a key issue for the professionals polled, with more than half (59%) citing it as a cause for concern. Three quarters of respondents believe a Remain result in the referendum would have been better for their business.

The main priority in the exit negotiations with the EU, according to the respondents, should be maintaining access to the single market for goods and services (58% of responses). This is followed by aiming to maintain access to high-skilled labour through the single market, with 42% of respondents citing this as an important goal.

Nevertheless, business leaders remain optimistic with regard to their own chances: a vast majority (85%) are confident they can adapt to the consequences of the UK eventually leaving the EU. This confidence does not extend to the government though: just a third (35%) of respondents are confident the government can negotiate the best deal possible for UK businesses with the rest of the EU. This improves slightly but remains a minority opinion among PE-backed respondents (42%).

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• Topics
• Industry
• UK / Ireland
• Brexit
• BVCA
• United Kingdom