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Corporate Finance
Deals Round Up

Leading Global Mid Market Advisor for over 20 years (Refinitiv)

About KPMG Corporate Finance deals

COVID-19 has certainly had a significant impact on the first half of 2020. Many processes were stalled and put on hold, while others were completely pulled. By June, we started to see some ‘grass shoots’ emerge with some transactions going ahead and others considering their options again.

For the second half of 2020, we predict a number of notable trends will continue:

  • Private equity money has to be put to work to support buy-out and secure bolt-on acquisition opportunities for exciting businesses;
  • A weaker sterling will continue to be a factor encouraging strong interest in UK businesses from overseas investors in the US and Europe;
  • Corporate activity will remain strong as companies look to consolidate markets, finding potential ‘bargains’ and driving synergy opportunities as a means of enhancing shareholder value;
  • Large corporates may look to sell off non-core assets to support the balance sheet, with these companies having strong interest from PE;
  • Public to private transactions will continue to rise with a number of listed assets looking undervalued;
  • Key sectors that have underpinned the economy in the first half of 2020 - including healthcare, technology, business services, energy and differentiated businesses that are tech-enabled and disruptive - will experience increased levels of M&A activity. We also predict that companies with ESG propositions will attract strong investment.

Many of those who have been mulling over an exit have done their early prep work and are set to launch processes in the final quarter of 2020. We expect the second half of 2020 to kick off a number of new sales processes. For many companies who have showed resilience through COVID-19, it will be considered a good time to get deals done – for vendors, it is a chance to crystallise returns and for buyers to press ahead with strategic acquisitions to drive growth or put private equity money to work.

Of course, uncertainty remains in the background as we head towards the end of the year and Brexit deadlines. But there are encouraging signs that it will be more active than H1 2020.

 

Jonathan Boyers
Partner
Head of Corporate Finance, UK
Jonathan.Boyers@kpmg.co.uk

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