UK M&A hit hard
Article Date: Feb 26 2009
UK companies remain popular targets
Deal volumes and values of mergers and acquisitions (M&A) in the UK declined faster than those in the US and worldwide last year, according to new data from investment bank RW Baird.
Overall deal value almost halved in the UK last year, compared to a decline of 39.7 per cent globally, 42 per cent in the US, and 41.9 per cent in Europe.
However, conditions remained more tolerable for buyers at the lower end of the mid market in the UK, with overall transaction numbers for sub-$100 million deals declining by less than a quarter.
In contrast, the upper mid-market and $1 billion-plus segments were hardest hit with both transaction numbers and volumes falling by more than 55 per cent.
Globally, the UK became the top target country by number of deals as sterling weakened over the year, and the US became the top acquirer by number of deals taking advantage of a strengthening dollar, according to the research.
The most popular target sector in the UK for acquisitions was professional services, though the study speculates ‘these may be primarily distressed sales’.
