Foreigners buy into UK recovery by snapping up manufacturers
BRITAIN’S recovery has reached the merger and acquisition business, with the number of buyouts jumping 13.4 per cent in the final three months of 2013.
Trade deals led the rise with an increase of 15.1 per cent to 466 in the quarter.
Private equity deals followed with a rise of 6.4 per cent in the quarter and 9.1 per cent on the year to a total of 84.
Interest in Britain’s recovery from foreign firms is a particular driver of the rising activity.
The price of the sales also increased, with the enterprise value to Ebitda (earnings before interest, tax, depreciation and amortisation) ratio increasing to 12.1, up from 11.3 in the previous quarter and 9.1 a year earlier.
“The relative strength of the UK economy makes it a highly attractive growth market by overseas investors, with a high volume of interest coming from countries such as the US and Japan,” said BDO’s Tim Clarke.
“With economic indicators remaining positive we expect growth in the M&A market to continue into 2014, bolstered by a pick-up in private equity activity.”