M&A volume at private UK firms dives to lowest level since 2007
BRITAIN’S private companies are holding off on mergers and acquisitions (M&A) as uncertainty around next year’s general election and a lack of sellers has sent deal volumes plunging to their lowest level since 2007, according to professional services giant BDO.
Trade deals saw the sharpest fall with the number of completed transactions plummeted by 17 per cent to just 296, while private equity deals increased nine per cent to 81.
“The private company M&A market stalled in the last quarter despite the increasing willingness of private equity firms to recognise value and pay a premium for quality businesses,” said BDO partner Roger Buckley.
“The issue is lack of supply and it remains to be seen whether sellers will be tempted into the market ahead of the looming general election to avoid the future tax uncertainties that this generates.”