Some 62 per cent of the 98 board-level respondents to the survey from broker Daniel Stewart anticipate sealing M&A deals in the next year, with a further 18 per cent undecided.

Most deals will be funded by a mixture of cash and equity, the survey suggests, with 73 per cent of executives favouring this route. Some 12 per cent expect to use cash alone, while a similar number are looking to complete all-share deals.

A clear majority (70 per cent) of companies are prepared to pursue both planned and opportunistic deals, while five per cent reject pre-considered deals altogether in favour of unplanned ones.

Valuations on AIM have fallen sharply over the past 18 months, with research from Growth Company Investor demonstrating that almost half of companies quoted on the market are valued at less than their annual turnover.