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Investor confidence in UK SMEs remains strong as M&A improves in Q3 2016


Posted on 14 November 2016

It’s encouraging to see that post the referendum a strong investor appetite for UK based-SMEs continued in Q3 2016 with 26 private equity backed deals being completed with a total combined value of £983m. 

This is according to the Q3 2016 edition of the Cass Business School UK Growth Buyout Dashboard which has been released by Lyceum Capital. It analyses new investments in majority deals backed by private equity firms, with an enterprise value between £10m and £100m.

The figures are building on strong momentum from Q2 and show that despite continued Brexit uncertainty, the last two quarters combined to deliver the highest volume for a 6-month period since the first half of 2008.

Demand from private equity remains strong – but are UK SMEs equally optimistic?

It is difficult to predict the extent to which Brexit will impact the lower-mid market. Smith Cooper has not seen any signs of a slowdown and completed 10 deals in the last six months. A number of our deals have involved trade purchasers including the sale of WFF Crieff Limited. A leading frozen meals delivery service, operating a franchise model.  

Overall, the outlook for M&A in the lower-mid market remains positive, with appetite from both private equity and trade investors remaining at a healthy level. 

It is said the change can be good for M&A.

To find out more please contact a member of our Corporate Finance team.


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