Are Animal Spirits Driving M&A in the UK and EMEA?
Jul 16, 2024
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James Robinson, UK M&A Head, and Dwayne Lysaght, EMEA M&A Head, discuss the revival of M&A markets in the UK and EMEA with topics like global strategic deals, financial sponsors' opportunities, cross-border trends, and valuation discrepancies driving market confidence.
Increased animal spirits driving M&A activity among boards and investment committees.
Growing interest from global strategics in acquiring UK and Ireland assets due to valuation discrepancies.
Deep dives
UK M &A Market Trends and Drivers
The UK M &A market has experienced significant activity in 2024, surpassing deal volumes of the previous year. This surge can be attributed to increased animal spirits among boards and investment committees, normalization in financing markets, and growing interest from global strategics looking for scale through M &A. Financial sponsors have also become more active, particularly in the P2P space, taking advantage of value dislocations in UK equity markets.
Cross-Border Trends and Regulatory Aspects
Cross-border M &A trends include US and global companies acquiring high-quality UK and Ireland assets due to valuation discrepancies. Regulatory aspects, such as the UK's competitions authority and national security regulations, are becoming more predictable, indicating a favorable regulatory environment for future M &A deals. The potential re-rating of UK equity markets and increasing outbound M &A interest from UK companies suggest a shifting landscape.
Market Outlook and Future Trends
The momentum and confidence in the UK and EMEA M &A markets are expected to continue, with a focus on larger transactions and strategic consolidation. Debt remains relatively inexpensive compared to historical averages, providing financial flexibility for firms. Anticipated political settlements and global conflicts resolution could further boost market confidence and drive M &A activity for the coming years.
Host Evan Junek is joined by James Robinson, Head of UK and Ireland M&A, and Dwayne Lysaght, Head of EMEA M&A, to unpack the revitalization of the M&A market in the UK and EMEA. From increased overall confidence to global strategic deals, financial sponsors' opportunities and cross-border trends, get an in-depth look at what’s driving the market forward.
This episode was recorded on June 28, 2024.
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