Posted on 3 September 2014
A recent report by Experian Corpfin has revealed that the number of deals in the UK has surged by almost 20% in July 2014 showing the highest level regional growth across the world!
The monthly review which reports on merger and acquisition activity across the UK, North America, Europe and the Asia Pacific regions has recorded that the UK has seen the largest rise with 448 transactions, up from 379 in June.
The report revealed an increase of 26% in small deals worth between £500,000 and £10m, mid-market deals up by 24% and large deals, worth between £100m and £1bn showed a smaller rise of 3.2%.
Despite the increases in small, mid-market and large deals, the amount of 'mega deals' worth £1bn or more declined by 43% compared with June, a "significant" factor in the 22 per cent month-on-month drop in UK deals value, which was £23.7bn for July.
However, the value of deals for the year so far is £202.5bn, up by 72% on the £177.9bn recorded for the same period in 2013.
I suspect the welcome increase in small and medium UK deals reflects a number of features in the recovering economy; the continuing cautious return of modest lending for SMEs (one of our last deals was a debt funded MBO), the pent-up demand of ageing shareholders who deferred a sale at the start of the recession and, most important of all, the shift in confidence of businesses and the public throughout this year. Long may the improvement continue!