Nearly two thirds of executives are expecting more UK firms to be acquired by overseas companies in the next 12 months, according to a survey.

The study, by law firm Browne Jacobson, also found an expected rise in inward investment.

Michael Sadler, partner and head of real estate and construction at Browne Jacobson, said: “Despite pressures, we’re seeing a measured sense of optimism in the market, particularly in relation to inward investment and inbound M&A activity.”

Earlier this year, French construction giant Vinci completed its acquisition of FM Conway – one of the largest pieces of M&A seen in the industry in recent years.

The survey also found that 60 per cent of executives believe AI and digital transformation will “fuel future deal activity”.

However, only 18 per cent of respondents identified access to tech or intellectual property as a key investment driver, which was the lowest across all sectors surveyed.

Sadler said the survey also showed that investors were taking a “strategic view, with heightened interest in logistics hubs, data centre infrastructure, and mixed-use regeneration schemes”.

He added: “This aligns with long-term structural shifts: the drive towards urban renewal, the need for regional development, and the sector’s accelerating transition towards modern methods of construction.”

The survey was conducted among  383 executives and business leaders in the UK and Ireland from £100m-plus turnover firms across five sectors. Of the 383, 62 were from construction firms.