Why Is The UK M&A Market So Buoyant At Present?

Posted: Oct 30, 2017

During 2017 HURST Corporate Finance have seen a very competitive market in UK M&A, with companies consolidating their position through acquisition, International companies showing a high level of interest in UK assets and an ongoing strong interest in quality companies by Private Equity investors, we have also seen values pick up and a return of bank funding for Management Buy-Outs.

There are a number of factors at play in the current mergers and acquisitions market, such as:

  • Private equity investors have unprecedented amounts of funds to invest in quality businesses. HURST recently advised the shareholders of Utilities, Design & Planning on the equity investment in their business by Private Equity firm, Foresight Group.
  • International trade buyers are seeking to invest in the UK due to the fall in sterling, but also European companies are seeking a post Brexit base in the UK. HURST recently advised, US based business, Kleen-Tex Industries on their acquisition of The Turtle Mat Company. HURST also advised the shareholders of Xtra Mile Events to French company, Amoury Sports Org.
  • A number of sectors are in consolidation phase with medium and large companies looking to strengthen their market share – HURST recently advised the shareholders of Positive Cashflow on the sale of their business to 1pm Plc.
  • Banking appetite for debt funding acquisitions by management has returned. HURST recently advise the Management Team of marketing and creative agency Barratt Dixon Bell on buying out the shareholders, by raising funding through HSBC.

Click here to find out more about what the HURST Corporate Finance team has been upto this year.