42013526 - Horizons - Q4_v04c

HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 19

UNITED KINGDOM & IRELAND HEAT CHART BY SECTOR

TMT

112 23% 82 17% 65 13% 57 12% 47 10%

Financial Services

Consumer

Industrials & Chemicals

Energy, Mining & Utilities

LOOKING AHEAD

Business Services

45 41 25

9% 8% 5% 2%

Looking ahead, we expect to see an increasing number of transactions inTMT, Business Services and Financial Services. Consumer will also be of interest for PE buyers as they consolidate global brands and tap into the increasing consumer spend in a post-COVIDworld. Valuations will remain high as the influx of capital chase returns. However, the due diligence process is taking longer as buyers look to gain a better understanding of the target operations, so it’s imperative that vendors are fully prepared when going to market, and utilising vendor due diligence can help accelerate the process. The BDO Heat Chart also highlights a return for M&A activity in Energy, Mining &Utilities as trade and financial buyers look to acquire renewable energy companies. But sustainability is not just confined to the energy sector. ESG is now impacting M&A in all sectors as sustainability criteria are becoming an increasingly important factor for institutional and private investors in choosing which companies to invest in.

Pharma, Medical & Biotech

Leisure

Real Estate

12

TOTAL

486

UNITED KINGDOM & IRELAND MID-MARKET VOLUMES BY SECTOR

2020

2021

151

151

5

7

49

48

19

21

58

50

45

57

44

24

39

39

79

73

Technology & Media

Financial Services

Energy, Mining & Utilities

Pharma, Medical & Biotech Real Estate

Consumer

Business Services

Leisure

Industrials & Chemicals

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