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British M&A Activity: Poised for Growth in 2025 The landscape of British Mergers and Acquisitions (M&A) is expected to shift positively as we head into 2025, according to City advisers. The recent Budget has instilled a sense of certainty among dealmakers, paving the way for a potential rebound led by international corporates and private equity firms. This shift comes after a period marked by heightened economic and political uncertainties. Recent Trends and Data The latest figures from the Office for National Statistics highlight the challenges faced earlier this year, with M&A activity reaching a four-year low in June due to persisting uncertainties. October saw a continuation of this trend, with only 27 publicly listed companies in a takeover offer period, marking the lowest number since January. Bids Overview: Of the bids during this period, 13 were recommended offers, and 14 were possible offers, with only one formal offer announced. Quarterly Recovery: There was a slight recovery in the third quarter, with deal value increasing by nearly 20% year-on-year to £46.5 billion. However, the total deal count decreased by 1.5% to 967.   Challenges and Opportunities A quiet spell in M&A activity followed a busy first half of 2024. This lull was largely driven by uncertainties surrounding interest rate directions. Despite this, some tax hikes landed at the lower end of expectations, although they did lead to a selloff in government debt due to plans for increased borrowing. Business groups have expressed concerns over rising costs and a potential hiring slowdown attributed to employer tax increases. Looking ahead, with greater clarity in the political landscape and ongoing challenges in UK capital markets, there is optimism for a sustained increase in UK M&A activity. This environment could foster new opportunities for growth and expansion in the coming year.

British M&A Activity: Poised for Growth in 2025 The landscape of British mergers and acquisitions (M&A) is expected to shift positively as we head into 2025, according to City advisers. The recent Budget has instilled a sense of certainty among dealmakers, paving the way for a potential rebound led by international corporates and private equity firms. This shift comes after a period marked by heightened economic and political uncertainties. Recent Trends and Data The latest figures from the Office for National Statistics highlight the challenges faced earlier this year, with M&A activity reaching a four-year low in June due to persisting uncertainties. October saw a continuation of this trend, with only 27 publicly listed companies in a takeover offer period, marking the lowest number since January. • Bids Overview: Of the bids during this period, 13 were recommended offers, and 14 were possible offers, with only one formal offer announced. • Quarterly Recovery: There was a slight recovery in the third quarter, with deal value increasing by nearly 20% year-on-year to £46.5 billion. However, the total deal count decreased by 1.5% to 967. Challenges and Opportunities A quiet spell in M&A activity followed a busy first half of 2024. This lull was largely driven by uncertainties surrounding interest rate directions. Despite this, some tax hikes landed at the lower end of expectations, although they did lead to a selloff in government debt due to plans for increased borrowing. Business groups have expressed concerns over rising costs and a potential hiring slowdown attributed to employer tax increases. Looking ahead, with greater clarity in the political landscape and ongoing challenges in UK capital markets, there is optimism for a sustained increase in UK M&A activity. This environment could foster new opportunities for growth and expansion in the coming year.

Waves of M&A 〰 💱 The First Wave (1839-1904) Horizontal Mergers Which means that firms in the same industry were buying each other to form larger entities. The Second Wave (1919-1929) Vertical Integration When concerns about monopolization by these massive firms merged during the first wave resulted in the first antitrust laws protecting competition. Therefore, companies weren't permitted to grow horizontally. Instead, to develop firms focused on improving profit margins and expanding vertically. i.e., A steel producer buys a company transporting steel rather than acquiring another steel producer. This vertical wave integration ended in 1929, at the beginning of the Great Depression. The Third Wave (1955-1970) It involved the formation of conglomerates aiming to diversify operations, targeting multiple industries. The Fourth Wave (1974-1989) If we assume that most of the transactions in the first three M&A waves occurred peacefully, this wasn't the case with the fourth wave. Between 1974 and 1989, when hostile takeovers and leveraged buyouts became popular among financial buyers, a takeover is deemed hostile if it doesn't have the approval of the existing board of directors and the majority of the company's shareholders. Nevertheless, public firms are often subject to such takeovers because financial buyers can offer a significantly better price per share than current market conditions. The Fifth Wave (1993-2000) As the world became more and more global, so did businesses. Many firms expanded internationally and became actual global players. Transactions of foreign companies buying a firm in the India businesses growing internationally through M&A were prevalent. The end of this wave came with the dotcom bubble burst. A few years were needed for markets and investors to recover from the dotcom bubble. The Sixth Wave (2003-2008) Many private equity and LBO transactions were carried out between 2003 and 2008. The end of this M&A wave came with the arrival of the financial crisis after the bankruptcy of global investment bank Lehman Brothers and mortgage firms Fannie Mae and Freddie Mac. Many governments worldwide took additional debt on their balance sheets to stimulate the shaken economy, and soon the financial crisis transformed into a sovereign debt crisis. The Seventh Wave (2011-2019) After the crisis, many corporations became attractive targets to foreign investors due to suppressed valuations. Cross-border transactions became popular among Asian corporations, which developed a strong appetite for European businesses. The seventh M&A wave ended before the COVID 19 shutdowns in the subsequent two years, the market saw a massive influx of capital due to central banks worldwide increasing money supplies. Recently, VC financing and IPOs of tech companies became trendy, but soon afterward, the market began to shake due to fears of recession, inflation and global political and military tension. #mergers #acquisitions #privateequity #IPO #VC

Private equity firms are forecasting a substantial rise in UK deal activity in 2025, with 84% expecting to execute between five and ten deals, according to a report by Reuters citing a survey by Deutsche Numis published on Tuesday. This represents a significant shift from last year, when only 12% of private equity firms reported they were “highly likely” to pursue bolt-on acquisitions for existing portfolio companies. Deutsche Numis surveyed 200 senior private equity executives, who expressed growing interest in public-to-private transactions, with 26% of respondents identifying public assets as their primary pipeline focus – a notable increase from just 14% in 2023. Firms are also signalling a readiness for larger-scale acquisitions, moving away from the smaller bolt-on deals that dominated in recent years. This optimistic outlook follows a rebound in UK dealmaking, spurred by stabilising interest rates, which have eased financing conditions for buyouts. So far in 2024, M&A activity in the UK has risen by 28.3%, with strong interest in the financial, industrial, and consumer sectors, according to data from LSEG. Despite these positive expectations, two-thirds of survey respondents described the UK debt market as “challenging” or “significantly challenging,” although this is an improvement from 2023, when 73% expressed similar concerns. Regulatory risks have also emerged as a major consideration, with firms wary of potential interventions from the UK’s Competition and Markets Authority, which they view as increasingly proactive. Source: Private Equity Wire

🚀 Join our exclusive workshop on FDI Controls and Restructuring: a comparative analysis between the US and France! 🌍 The Fusions & Acquisitions, Éditions Dealflow-Data and ESCP Business School FDI Control Forum is coming up next week, 26 June 2024 at MEDEF in #Paris. Register now 🔗 www.fdicontrol.com Are you interested in understanding the intricate dynamics of restructuring and FDI screening in two of the world’s largest economies? Do you want to gain valuable insights into key strategies, engage in thought-provoking discussions, and equip yourself with the knowledge to anticipate and navigate future developments in this critical area? Then please join our exceptional panel of experts to learn more about this dynamic area! 🎤 Speakers: 📌 Anne-Sophie Noury, Partner & co-head of Restructuring and Insolvency, Weil, Gotshal & Manges LLP - Paris Office 📌 Pierre-Olivier Chotard, Secretary General, Comité Interministériel de Restructuration Industrielle (CIRI) 📌 Brian Reissaus, Senior Advisor, Freshfields Bruckhaus Deringer (former career lead for CFIUS, Acting Assistant Secretary for Investment Security, and Deputy Assistant Secretary for Investment Security Operations.) 📌 Arnaud Joubert,  Partner, European co-head of Restructuring, Rothschild & Co 📌 Wissam Charbel, Partner, Head of European Credit, Farallon Capital Management 📌 Moderated by: Edmond Schlumberger, Professor University Paris 1 - Sorbonne School of Law 🔍What You Will Learn: ▶ Challenges and considerations when combining FDI controls with insolvency procedures. ▶ The scope of FDI controls in the US and France, including key sectors and notification requirements. ▶ Detailed processes for FDI reviews in both countries, including timelines and decision-making criteria. ▶ Expectations from FDI authorities and common conditions imposed on foreign investors. Why Attend? 💡Gain a comprehensive understanding of FDI controls in two of the world's largest economies. 💡Learn directly from leading experts involved in shaping and enforcing FDI policies. 💡Discover the latest trends and regulatory updates that could impact your investments. 🌟 Don't miss this opportunity to stay ahead in the ever-evolving landscape of international investment. Register now to secure your spot! 📅 Date: June 26, 2024 ⏰ Time: FDI Control Forum registration commences from 8h15 🏢 Location: MEDEF 👉 Register Here: www.fdicontrolforum.com cc: David Chekroun Marina Guérassimova Claire Campbell Lars Goubet-Wolff #FDIControlForum #Restructuring #Insolvency #CFIUS #CIRI #ForeignInvestment #FDI #InternationalBusiness #Economy #GlobalTrade

Reports are showing that M&A in Canada is poised for success in 2024. This Bloomberg article notes that stagnant market conditions are expected to stabilize this year, bringing more deals. The industries expected to be on the leading of this rebound include technology, healthcare, food & beverage, real estate, mining, and energy. Time will tell what the landscape of Canadian M&A holds, but signs point to more activity in this space than 2023. More information in the linked article. #MC2BusinessAdvisors #MergersAndAcquisitions #Divestiture #Financing #BusinessPlanning #BusinessExpansion #Business #BusinessConsulting #ProfitabilityEnhancement #Valuation #Strategy #Coaching

An M&A transaction enables a CEO “to game performance-related pay, through morally hazardous borrowing and by tax avoidance and creative accounting, procedures that deliver improved pay and perks for no genuine improvement in ... performance” https://lnkd.in/gPzmTv5F

Even if #deal pace accelerates, #valuation and #funding will be subpar. #mergersacquisitions #aquisitions #dealmaking https://lnkd.in/dGiqhfRu

Middle Market Growth: Navigating Challenges in Middle Market M&A Transactions The middle market, a pivotal segment of the economy often overshadowed by larger corporations, is a vital driver of economic growth and innovation. Middle Market Growth, defined by companies with annual revenues ranging from $10 million to $1 billion, represents a diverse array of businesses across various industries. In this comprehensive blog, we delve into the intricate world of Middle Market M&A transactions, exploring the challenges faced by businesses and strategies to navigate them effectively. Understanding Middle Market M&A Transactions Middle Market Growth is closely intertwined with M&A transactions, where companies engage in buying, selling, or merging to capitalize on growth opportunities. These transactions are instrumental in driving economic activity and fostering industry consolidation. Understanding the dynamics of Middle Market M&A is crucial for businesses seeking to leverage growth opportunities and achieve strategic objectives. Trends and Growth Drivers in the Middle Market Middle Market Growth is fueled by a convergence of factors, including technological advancements, demographic shifts, and globalization. These trends create a fertile ground for businesses to expand their market presence, drive innovation, and explore new revenue streams. Moreover, the middle market's nimbleness and adaptability allow companies to capitalize on emerging opportunities and respond swiftly to market changes. Benefits and Opportunities of Middle Market M&A Middle Market M&A transactions offer a myriad of benefits for businesses, including access to new markets, synergies, and economies of scale. By combining complementary strengths and resources, companies can enhance their competitive positioning and accelerate growth. Additionally, M&A transactions provide opportunities for strategic diversification, allowing businesses to mitigate risks and capitalize on evolving market trends. Challenges in Middle Market M&A Transactions While Middle Market Growth presents lucrative opportunities, it is accompanied by unique challenges that businesses must navigate effectively. One of the primary challenges is the limited access to capital, particularly for smaller middle-market firms. Securing financing for M&A transactions can be daunting, requiring businesses to explore alternative funding sources and negotiate favorable terms. Valuation uncertainties also pose significant challenges in Middle Market M&A transactions. Determining the fair value of a business involves complex financial analysis, market assessments, and forecasting methodologies. Moreover, cultural integration issues can arise when merging disparate organizational cultures, requiring careful planning and communication to foster cohesion and alignment. Regulatory complexities further complicate Middle Market M&A transactions, with businesses navigating a myriad of legal and compliance requirements. Ensuring…

In today’s challenging environment, companies across the globe are repetitively faced with rapid disruptions, bringing about an unforeseen elevation in costs, as well as cash constraints. Before considering drastic measures like cost-cutting or voluntary winding-up, explore the benefits of Corporate Restructuring with Borg Galea & Associates. 🌟 Our Corporate Restructuring Services Include: ✅ Financial Restructuring: Reorganise share capital, refinance debt, and divest from loss-making assets to optimise your financial health. ✅ Organisational Restructuring: Merge, acquire, or relocate, and streamline operations to enhance efficiency and reduce costs. For companies facing more complex challenges, we can guide you through formal restructuring procedures under Part VI of the Malta Companies Act, including court-administered recovery plans. Every restructuring decision is crucial—let our experienced team help you navigate the process with confidence. Learn more about our services here: ▪️ Call now on +356 2703 7012. ☎️ ▪️ Learn more: https://lnkd.in/dA5Ynmfz And request a quote for our services today: https://lnkd.in/dTJwTKGW #ExpertAdvice #ComplianceChecks #RegulatoryCompliance #BusinessResilience #RiskMitigation #BorgGaleaAndAssociates #BusinessSuccess #StayCompliance