Welcome to the latest edition of the Cripps South East M&A Barometer, a review of M&A activity of high-growth companies in the South East. Here we highlight developments in deal volume, sector trends, investor preferences, and regional performance for 2024, contextualising the findings within the broader UK market.

The acquisition and sale of companies acts as an indicator of the UK's economic condition. High acquisition volumes reflect economic growth, while decline in acquisition volumes can impact the broader economy. In early 2024, we reported that deal activity remained subdued in 2023 due to macroeconomic factors. While the South East performed relatively well compared to the rest of the UK, a rapid recovery in 2024 was deemed unlikely, necessitating patience. However, the continuous emergence of new market norms in recent years has required both buyers and sellers to swiftly adapt to evolving market conditions.

2024 saw a moving political landscape with elections in the UK, the US and elsewhere creating political uncertainty. The new UK government’s Autumn budget introduced tax changes impacting M&A with increases in employer national insurance contributions and the national minimum wage raising business costs and potentially lowering valuations. Despite this, M&A activity remained strong overall in the South East with tech leading the way.

As the leading law firm in the South East, Cripps has been a longstanding champion of businesses, their leaders and founders in our region. To discuss the market, your options or how Cripps can help you, please get in touch.