Private equity firms remain a substantial factor in the mergers and acquisitions market. Recent analysis by a number of data providers has shown that there is over $1.5 trillion in private equity globally waiting to find a home. Confidence is obviously another big consideration. The commencement of the vaccine programme in the UK will clearly go a long way to restoring confidence in potential strategic acquirers and shareholders in companies who decided to ‘wait and see’ last year.
Given that it is comparatively cheap to borrow money for acquisitions, CEO’s are likely to have more confidence in borrowing money to acquire targets. Finally, looking at non UK buyers of UK assets, the weakness in the pound is always going to be a stimulus to foreign companies looking to acquire in the UK.
There is considerable pent up demand both to buy and sell UK companies. Brexit and COVID have both played their part in delaying these plans. 2021 could well be the beginning of the unleashing of that demand.
Our corporate finance and taxation teams are experienced in advising on mergers and acquisitions. Please contact me or your usual UHY adviser should you wish to discuss this further or get in touch via our contact form.
The next step
For further advice please contact Robert Kidson or visit our corporate finance page for further information about how we can help.
