Britain comes in at third worldwide for investors, behind the US and China.
EY revealed in the Global Capital Confidence Barometer report the UK has jumped up by two positions after being ranked fifth in the same poll last year due to the widespread panic brought on by the divorce to the European Union.
The rise in position is believed to be down to the pound’s decrease in value, which in turn made products cheaper.
Steve Krouskos, EY’s global vice chair of transaction advisory services told Bloomberg: “Doing deals is in the DNA of UK companies. The UK is home to the most important assets sought by dealmakers – technology, talent and intellectual property – so it always has been and always will be a major player.”
The results from EY also state that Americans and Australians have been the biggest foreign players in the UK’s M&A sector.
This summer saw Vantiv agree to buy e-commerce payments company Worldpay Group for £8billion.
McCormick & Co. took over Reckitt Benckiser for £3.2 billion.
EY results have proposed that M&A activity will only increase.
It surveyed almost 3,000 executives across 43 countries and found 56 per cent aim to execute a deal within the next 12 months.
More than half believe the most competition in the M&A market will come from private equity.
Mr Krouskos added: “The resurgence of private equity could be the biggest M&A story over the next 12 months, and see corporates challenged much more aggressively for assets than during the past five years.
“Brexit creates some uncertainty, but fulfilling strategic growth needs rather than nationalism will drive deal sentiment.”