Helping you prosper

UK deal values stay strong

03 August 2020

With the testing times currently being faced, not just in the UK but globally, many people have been looking to see what effect would be felt in the world of M&A, both from the amount of deals being done, but also the multiples obtained.

Two of the main questions being asked since people started to return to offices and the slow introduction of the ‘new normal’ are; what is your experience of the market and how is deal flow? Therefore, it was with great interest that I was watching out for the publication of Experian’s UK & Ireland M&A report for H1 2020.

The recently published report showed, as many people expected, a substantial decrease in deal volumes despite the rebound experienced in the first quarter of 2020 from the slight dropping off at the end of 2019. However, deal values in the UK have stayed strong with total deal values for H1 2020 increasing by 23% when compared to H1 2019 (£107 billion and £87 billion respectively).

This would suggest that despite the current situation, there are still a number of buyers out there, both trade and private equity, that are willing to pay that much extra for strong businesses that have proved they are able, not only survive the current crisis, but potentially thrive in it.

To add to the report’s findings, anecdotal evidence from within the industry would appear to imply that the businesses that offer both a strong financial track record and strategic fit will still be able to command high levels of interest from trade and private equity type buyers.

If you would like to enquire confidentially about our services or for an informal discussion about planning an exit from your business please feel free to get in touch with Andrew Hancock or your local UHY adviser.