Award-winning dealmaker Jonathan Boyers has predicted a busy end to the year in the 聽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: 鈥淚t鈥檚 a great time to be in the UK market doing deals.鈥�
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: 鈥淲ith 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).
鈥淔ollowing 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.
鈥淒espite 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.鈥�
Boyers said last week鈥檚 general election had coincided with improvement in market sentiment as well as rising consumer confidence, with Labour being the 鈥榣ucky beneficiaries鈥�.
He added: 鈥淟ots 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.
鈥淲ith UK interest rates stabilising and probably reducing again, confidence has returned to the debt markets with more liquidity.
鈥淯K companies also continue to be 鈥榞ood value鈥� acquisitions for international trade buyers, particularly US growth-focused corporate acquirors.
鈥淲hilst 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鈥檓 expecting a much busier Q4 and start to 2025 in terms of deals activity.
鈥淢any 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鈥檚 a great time to be in the UK market doing deals.鈥�
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