42014429 - Horizons Q1 2022_v06

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

UNITED KINGDOM & IRELAND HEAT CHART BY SECTOR

TMT

145 29%

Financial Services

69 14%

Consumer

61

12%

Industrials & Chemicals

58 11% 55 11%

Business Services

LOOKING AHEAD

Energy, Mining & Utilities

47 35

9% 7%

M&A across UK & Ireland hit near-record highs in 2021, and although there was a slowdown in the second half of the year, all the signs are that mid-market M&A activity in 2022 will continue to be at high levels. The roll out of vaccination programmes and the lifting of restrictions will help grow the UK economy and this positive economic outlook, coupled with PE firms having near record levels of dry powder, will help drive M&A activity in 2022. 2022 will also likely see a rise in distressed opportunities as the effects of the withdrawal of Government support schemes and the repayment of pandemic loans start to take effect. The BDO Heat Chart predicts an active market in the UK & Ireland with 508 rumoured deals. TMT is expected to be extremely active with 145 deals, followed by Financial Services (69) and Consumer (61). Pharma, Medical & Biotech, Leisure and Real Estate are the sectors expected to have the least amount of activity.

Pharma, Medical & Biotech

Leisure

30 6%

Real Estate

8 2%

TOTAL

508

UNITED KINGDOM & IRELAND MID-MARKET VOLUMES BY SECTOR

2020

2021

152

195

5

14

49

56

19

26

59

68

46

68

44

31

38

49

79

82

Technology & Media

Financial Services

Energy, Mining & Utilities

Pharma, Medical & Biotech Real Estate

Consumer

Business Services

Leisure

Industrials & Chemicals

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