Award-winning dealmaker Jonathan Boyers has predicted a busy end to the year in the M&A market.
The veteran, who joined Alvarez & Marsal as managing director and head of corporate finance for EMEA after 34 years at KPMG, said: “It’s a great time to be in the UK market doing deals.”
He said he expected to see an increase in deals activity across all sectors but particularly in business services, tech and healthcare.
Writing on LinkedIn he said: “With Labour winning a strong majority and interest rates / inflation stabilising, the outlook for M&A activity in the UK is cautiously optimistic (bar any significant geopolitical disruption).
“Following a period of subdued deals activity in 2023 and into 2024, it looks like volumes and values of deals activity will slowly improve in the second half of 2024.
“Despite some views on the potential changes in tax rates unfavourable to entrepreneurs, a Labour majority, as we have already seen with the rally in stock prices and the pound edging up, will instil confidence to the UK economy.”
Boyers said last week’s general election had coincided with improvement in market sentiment as well as rising consumer confidence, with Labour being the ‘lucky beneficiaries’.
He added: “Lots of positive factors will contribute to renewed deals activity. Private equity houses are still sat on record levels of dry powder waiting to deploy in new opportunities beyond the buy and build strategies that have dominated the market over the past year.
“With UK interest rates stabilising and probably reducing again, confidence has returned to the debt markets with more liquidity.
“UK companies also continue to be ‘good value’ acquisitions for international trade buyers, particularly US growth-focused corporate acquirors.
“Whilst both owner managers and PE have been waiting for an improvement in the economy, we are seeing many companies starting to prep for sale over the summer so I’m expecting a much busier Q4 and start to 2025 in terms of deals activity.
“Many companies have used the last 18 months to refocus and streamline their businesses and as a result, we will see an increased number of attractive assets coming into the market. It’s a great time to be in the UK market doing deals.”
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