Mergers and acquisitions departments at the biggest firms have seen no signs of a reduction in deals amid the current economic uncertainty, magic circle partners told the Gazette this week - as research showed that fee-income growth remained strong.


However, solicitors said that there are fewer deals in the pipeline, with some suggesting there could be a significant slowdown in May.



Peter Charlton, global head of corporate at magic circle firm Clifford Chance, said: 'Generally, the corporate sector is still quite active. Companies in most sectors are in quite good shape and are seeing opportunities to do strategic acquisitions. But there are more difficulties in any part of the market that requires significant financing, such as private equity.'



Stephen Cooke, head of mergers and acquisitions at magic circle firm Slaughter and May, added: 'There has not been a slowdown so far, and we are as busy as last year. But people in the market tend to think this won't last. If you look at the pipeline, it may mean we are not so busy in May. At some point, the music is going to stop.'



A survey by consultants Deloitte showed that fee income among the top-100 firms grew 10% in the quarter ended 31 January.



Rachel Rothwell