After three years of unrelenting downturn, the eternal optimism of European investment bankers is finally paying off as signs of life return to the M&A market.

Gloom is no longer the overriding sentiment among M&A practitioners. Instead there is a sense that the tide has turned and larger and more interesting deals will emerge towards the end of the year. However, bankers recognise that the market remains tricky and any return to form, akin to the glory days of 1999, is several years away.