HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 17
UNITED KINGDOM& IRELAND PE DRIVES M&A ACTIVITY IN ANOTHER BUSY QUARTER
Another busy quarter for mid- market M&A in UK & Ireland, with 128 transactions reported at an aggregate value of USD 13.4bn. This is lower than the preceding quarters as the market starts to return to pre-COVID-19 levels. It is worth noting that 470 deals completed in the first nine months of 2021, with aggregate value of USD 48.5bn, which is equivalent in volume for the full year 2020 and UDS 10bn higher in value. However, the year-to-date activity is similar to the first nine months of 2018 and 2019, so the commentary about 2021 being a record-breaking year for M&A activity will very much depend on the final quarter.
As we look back over the last 20 months we are impressed by the resilience of the mid-market. Nearly all companies have had to rethink their strategy and quickly adapt to the new environment. The pandemic has brought a lot of suffering but through the chaos we have witnessed the strength and innovation of management teams as they have repositioned their businesses. It has often been commented that economic confidence underpins M&A activity, which even further highlights the exceptional bounce back in M&A activity as businesses demonstrated renewed confidence in their revised strategies and investment in their future growth. PRIVATE EQUITY: A KEY DRIVER OF M&A During Q3 2021 there were 37 private equity transactions, representing 29% of the total activity as an increasing number of PE funds sought out opportunities in UK & Ireland. Over USD 580 in new PE/VC
BIG PICTURE
• 128 transactions completed with an aggregate value of USD 13.4bn • With 29% of deal volume, private equity was a key driver in quarterly M&A activity • TMT leads the way in sector activity with 37% of all deals.
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