During the course of 2016, we observed:
- Very strong overseas interest in UK companies. An increasing proportion of companies we sell are bought by overseas acquirers; the selection of deals herewith include buyers from Germany, Japan and India. This has been positively influenced by a weaker sterling but, moreover, UK assets are seen as high quality and relatively safe by many international buyers.
- Private equity keen to buy. There is no shortage of capital looking for a home and private equity continues to compete strongly for acquisition opportunities. The market has also broadened with the establishment of more debt funds seeking safer, lower return transaction opportunities.
- M&A activity across the sectoral spectrum. Whilst some sectors are hotter than others, we have seen a broad array of buyers and sellers in virtually all sectors where we have transacted in. M&A activity is firmly on the board room agenda and confidence is higher than it has been for a number of years.
These themes continue to be evident in the transactions that we are advising on currently and we expect them to influence M&A activity into the medium term, and we are anticipating a continued strong deal flow across the market this year.
Download the pdf to read more detail about our observations and case studies.