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Corporate Finance
Deals Round Up

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

About KPMG Corporate Finance deals

‘Uncertainty’ was the watchword for 2019. Whether it was buyers or vendors, the lack of visibility over future trading conditions and the political landscape dampened dealmaking activity and the ambitions of management teams, leading to deal volumes being down on the prior year.

Nevertheless, our UK M&A team has acted as lead financial advisor on 74 deals in the last year with a number of notable trends:

  • Private equity money has been put out to work to support the buy out and secure bolt on acquisition opportunities for exciting businesses
  • Weaker sterling has continued to be a factor encouraging strong interest from overseas investors in the US and Europe
  • Corporate activity has remained strong as companies look to consolidate markets and drive synergy opportunities as a means of enhancing shareholder value
  • We have seen large corporates looking to sell off non core assets with these companies having strong interest from PE
  • Public to private transactions have also been on the rise with a number of listed assets looking undervalued
  • Key sectors continue to experience high levels of M&A activity including healthcare, technology, business services, energy and differentiated businesses that are tech-enabled and are disrupting a sector

The general election has now cut through some of last year’s lethargy, and what clients are telling me is that they are ready and raring to go.

Many of those who have been mulling over an exit have done their early prep work, and are set to launch processes in 2020. Meanwhile, I expect there will be a significant amount of demand, keeping prices high, as the market makes up for some of the lost volume.

We expect to see a busy first half of 2020. For many, it will be considered an opportune window 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, the threat of uncertainty could rear its head again towards the end of the year as we hurtle towards more political deadlines. But that won’t deter deal-doers in the short-term.

For further details on our deals by sector and region, please follow the links below.

 

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

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