Homenewswebinar insight current ma market trends august 2019


  • Want to realise value for your business? 

  • Is now a good time to sell, based on the current M&A Market? 

  • Who are the buyers? 

  • Is your lender supporting your financing needs? 

This is part one of our three-part series, full of practical tips if you’re thinking of selling your business now, or at some point in the future. 

What’s going on in the M&A market? 

Deal Volume 

  • There’s been a strong bounce back in transaction volume since the financial crisis. 
  • Trigger events such as births, deaths, marriages and divorces lead business owners to reflect on the direction of their business. These events occur regardless of political and economic circumstances, and have lead to the consistent level of deals we’ve seen over the last decade. 
  • Entrepreneurs’ Relief has been at its lowest rate of 10% for many years now. Will it stay this low in the future? It’s hard to say, and that’s why business owners are looking to crystallise value now. 

Interactive Poll Question: 

What are your biggest concerns over the next 12 months?

Brexit (50%), Recruitment (20%), Availability of funding (10%), Entrepreneur’s tax relief (10%), Change of government (10%).

What we think: 

There will be short-term effects in the M&A market from Brexit, but this impact has most likely been seen already by those waiting for the decision to be made, causing a backlog in deals. However, this seems to be shifting, with deal activity picking up again. –
Andy Parker – Corporate Finance Partner 

International Buyers 

  • International buyers are continuing to be attracted to the UK market, with roughly 50% of buyers coming from outside the UK over the last 9 quarters. 

Private Equity 

  • Private Equity are also consistently investing and buying UK businesses. Private Equity has raised more money in the last decade than ever before, with unprecedented levels of cash waiting to be invested, or “dry powder”. 

The Debt Market 

  • Post 2009, there’s been a shift from the traditional bank market to an influx of a group of institutions called Credit Funds, which: 
  • Have a more medium-term approach to lending 
  • Provide more strategic capital over a longer period of time 
  • Have more flexibility than the previous bank market, which was becoming increasingly regulated and focussed on capital assets and ratios 

Interactive Poll Question: 

Are you confident with your existing lender supporting your financing needs?

Yes (25%), No (13%), Not sure (62%).

What we think:

The telling statistic from this poll is that three quarters of our audience aren’t confident about their existing lender. This isn’t surprising, as we’ve seen through our conversations with traditional banks that there’s an element of caution caused by economic and political uncertainty. But there are alternative options out there. -  
Paul Ambrose – Head of Debt Advisory 

Who are the panel?

Krista Fox – Over 25 years’ Transaction Tax experience.

Andy Parker – Over 25 years’ Corporate Finance experience.

Paul Ambrose – Debt Advisory specialist.

Ben Rookes (Host) – Over 14 years’ Corporate Finance experience.

To watch the full webinar, click here.

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