Private equity and M&A market trends

Over the last year, the number of transactions whereby private equity investors provide capital for growth to young companies has fallen. According to research by Beauhurst, the volume of transactions has fallen by 15% since 2020. Increased interest rates and general economic uncertainty have played their parts in this along with the fact that there are fewer ‘exits’ available for investors at attractive values than was hitherto the case.

In contrast, there has been a significant increase in mergers and acquisitions activity among more mature companies in 2023. This has been more prevalent among private equity investors and consolidators in the professional services sector.

The above trend underscores the more cautious approach investors are taking. These trends are expected to continue in the UK for the foreseeable future, given the prevailing economic and political situation.

Our Corporate Finance and Taxation teams are experienced in advising on fund raising, restructuring and mergers and acquisitions involving both listed and privately owned companies. We can help businesses navigate the current market conditions and identify opportunities for growth.

The next step

Please contact Robert Kidson on or your usual UHY adviser should you wish to discuss this further.

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