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Mid-market UK M&A deal values double on last year

19 August 2021

Mid-market M&A activity has nearly doubled by value to £48 billion in the first six months of 2021, up from £28.6 billion in H1 2020. By volume, there were 149 deals recorded in H1 2021, a 55% increase on the 96 deals in H1 2020.

This is according to new research from Deloitte, which classifies the mid-market as between £100 million to £1 billion in deal value.

Fenton Burgin, head of Deloitte UK's Advisory Corporate Finance practice, commented: “We don’t see this situation changing and 2021 looks set to break all records in terms of deal activity. With interest rates remaining low, high levels of institutional capital are flowing into corporate finance. Deals that were put on hold in 2020 have come back to market. In addition, the pandemic has accelerated growth for a range of digitally-enabled UK mid-market companies and private equity is responding by offering early investment to super charge their development.

“In fact, private equity has seen its busiest period ever in the first half of 2021 and the number of UK buyouts is up almost 60% compared to 2019. Record valuations and the potential for higher future tax rates is accelerating some sale processes while average price earnings multiples - the price paid for businesses - have risen above 10.5x, the highest for five years.

“UK PLC also looks very good value to some overseas buyers right now as UK stocks are the cheapest today relative to their US and European peers than at any time since 1990.”

Richard Bell, managing partner of UK Financial Advisory added: “This increased level of activity is reflected in our deal pipeline nationally across the UK, and our team is rapidly expanding. Those businesses who’ve emerged from successive lockdowns with strong balance sheets and models are proving attractive targets.”

-Ends-

Notes to editors

The mid-market M&A analysis for Europe and UK from Jan 2020 – June 2021, sourced from Dealogic and ThomsonOne.

About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk.

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