There is a market expectation that private equity will play a dominant role in transactions going forward given the amount of unspent money sitting in private equity funds.
There has over the period of the pandemic been a flight to quality which has been widely commented on. This is likely to remain the focus in the coming months as investors and acquirers take the opportunity to only transact where it is evident that companies have not just survived the difficulties created by the pandemic but actually prospered during that period. In terms of sectors, KPMG recently produced analysis which showed that TMT's market share of UK mid market buy out deal flow rose from 12% in 2019 to close to 25% and healthcare rose from 7% to 9%.
In addition tech has become a focus of activity, according to Tech Nation,in the first 3 months of 2021 $8 billion of investment went into UK tech, double the amount of the comparable period in the prior year. The argument behind this is that instead of being tech led, tech services are much more driven by consumer demand these days.
In summary, given a fair wind over the remainder of the year, we are expecting an upturn in corporate activity focused on the highest quality assets in all probability dominated by the sectors mentioned above.
The next steps
Our corporate finance and taxation teams are experienced in advising on mergers and acquisitions. Please contact Robert Kidson or your usual UHY adviser should you wish to discuss this further or get in touch via our contact form.