The volume of M&A deals hit a five-year high in Ireland in 2018, despite political uncertainties causing a considerable slowdown towards the end of the year.

The data, produced by Irish firm William Fry, shows that M&A deal volume increased by 7.3% last year, going from 151 deals in 2017 to 162 in 2018.

However, William Fry partner and head of corporate M&A Shane O'Donnell said activity was its strongest in the first quarter and "tapered off quite significantly" towards the end of the year. He attributed the slowdown to global factors including Brexit, Trump, and trade wars.

The data shows that mid-market deals – between €5m and €250m – dominated last year with a total of 65. And although the value of private equity deals fell in value, the volume remained steady and matched its 2017 record of 34.

The activity levels are likely to be of increasing interest to international law firms that have built up bigger operations in Ireland since the EU referendum took place in 2016. Those firms include Pinsent Masons, Covington & Burling, Simmons & Simmons, and DLA Piper. Fieldfisher is also due to launch an office in Dublin this year.

Various banks and other institutions have also set up in the country, with many expecting an increase in economic activity.

"With Brexit, Ireland is now more attractive than before with the unfettered access to Europe compared to our near neighbours," said A&L Goodbody head of M&A Mark Ward. "So Irish targets will become more attractive than their UK equivalents."

Alan Murphy, Dublin managing partner at Eversheds Sutherland, added: "The Irish economy is very strong and we have seen a considerable uptick in M&A. There is still a lot of multinational activity and the indigenous businesses are doing very well. There is also lots of interest from PE houses both from inside and outside of Ireland."

However, he said clients are being increasingly cautious, influenced by Brexit and other factors.