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    Current M&A Activity

    The past year has paid testament to the resilience and growth of the UK’s Mergers & Acquisitions market.

    The M&A market experienced significant growth over the past year, posting record activity levels despite the ongoing COVID-19 pandemic. Business Intelligence experts, Bureau Van Dijk, reported a total of 9,477 deals involving UK businesses in 2021, an increase of 12% compared to the year prior. Of these deals, 22% involved overseas acquirers and 20% involved Private Equity firms.

    Some of the biggest trade buyers of 2021 included Marlowe plc completing 19 deals, Aston Lark Ltd completing 17 deals and RSK Group carrying out 12 deals.

    Many private equity firms are fuelling activity by investing billions in equity, as companies that demonstrate sustainable profits and growth experience high demand. UK companies received in excess of £65bn in PE investment last year, whilst UK PLCs started 2022 with a record £1.1 trillion in cash reserves.

    We believe that the M&A market will continue to grow in 2022 due to the ongoing appetite from buyers, sellers and investors to continue on their growth trajectories and execute their own acquisition strategies, with much of the commercial uncertainty surrounding the pandemic safely behind for businesses in many sectors.

    The latest budget also saw the announcement that Capital Gains Tax will remain unchanged at 20%. It had previously been believed it would be increased to recoup some of the growing costs of the COVID-19 pandemic, however it is now set to continue until the next budget review. In addition to this, Business Asset Disposal Relief (BADR), previously known as Entrepreneurs’ Relief, has also remained untouched. This means that business owners who opt to sell all or part of their shares, will pay just 10% tax on the first £1m of gains on qualifying assets.

    Therefore, for company owners, now is a particularly opportune time to consider the value of your business and contemplate potential exit strategies to harness the benefits of the current favourable market conditions.

    Whether you are considering exit strategy options or exploring another avenue, you can call our team in confidence on 0203 441 2003. Alternatively, you can use our free, online valuation calculator to determine the value of your company.