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    Current M&A Activity

    The UK’s Mergers & Acquisitions market is proving to be impressively buoyant despite the unsteady economic environment alongside the uncertainty amongst the government parties and political legislations.

    Demonstrating its resilience, the M&A market is experiencing busy times as Business Intelligent experts, Bureau Van Dijk, record significant figures for the first half of 2022. A total of 1,308 deals involved UK businesses in the first 6 months of this year. Of these deals, 462 (64%) involved an overseas acquirer.

    Some of the busiest sectors during H1 2022 were Energy and Power, Materials, and Industrials. The Refinitiv EMEA Mid-Market Insight May 2022 mentioned the top acquisitions in the last 12 months and some of these include: Sungara Energies Ltd acquired by Offshore Angola Block (Energy and Power); Greencoat Renewables PLC acquired by OrstedA/S-Wind Farm (Energy and Power);  Huhtamaki Oyj acquires Elif Holding AS (Materials); Huayou Intl Mining Hong acquires Prospect Lithium Zimbabwe (Materials); Investor Group  buys SellerX (Industrials); ARA Korea Ltd  buys The Marble Arch Partnership (Industrials).

    Companies as these demonstrate sustainable profits and growth and attract high demand amongst overseas acquirers and private equity firms. With the UK being the primary M&A target in Europe and third in the world, several private equity firms are influencing M&A activity within market as they invest billions into companies. As a result, last year UK companies received over £66 billion in private equity investment, whilst UK PLCs started 2022 with a record £1.1 trillion in cash reserves.

    Anticipation grows for the second half of 2022 as a result of the ongoing appetite from acquirers and investors alike to continue their growth strategies and invest their funds into flourishing businesses. The latest spring budget 2022 builds on previously declared support for SMEs including the business rates relief worth £7 billion over the next 5 years; increase the Annual Investment Allowance from £200,000 to £1 million until March 2023; subsidising the cost of high-quality training through Help to Grow: Management Scheme; and helping firms to adopt new digital technologies with the Help to Grow: Digital. Additionally, businesses will also benefit from the cut to fuel duty, and the Employment Allowance will increase to £5,000 from April – a tax cut of up to £1,000 for around 500,000 small businesses.

    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.