Private equity is leading the buy-out market with increasingly large sums of cash. Nonetheless, most corporate firms in the UK remain confident that they can compete successfully against private equity bidders.

Indeed, some 71% of corporates are positive about competing with private equity rivals in M&A auctions, while 88% are bullish about deal activity in the next 12 months, according to a survey by IntraLinks.

Many respondents saw the similarities between corporates and their targets as particularly helpful when discussing a takeover. Some 44% listed corporate synergies as the main advantage corporate bidders have over private equity, while 37% mentioned extensive knowledge of the market.

Andrew Damico, chief operating officer of IntraLinks, said: “After last year’s remarkable M&A volumes, it’s good to see that the vast majority of UK corporates expect the momentum to continue this year, with nearly half expecting to conduct a similar or increasing level of M&A.”