When assessing the health of the UK economy, the acquisition and sale of companies is an important indicator of growth. Acquisition is by far the most common route to exiting a business for both founders and investors. When there are high volumes of acquisitions, it is indicative of a dynamic and growing economy. However, when there are slower volumes, there can be a negative feedback loop for the wider economy.

This report looks at the M&A activity of early stage high-growth companies in the South East in 2023. It is a small snapshot of the UK market, with those companies in scope having been identified as ambitious businesses using at least one of eight triggers that suggest a company has high-growth potential (see methodology). As fast-growth businesses, these and the entrepreneurs and investors driving them, are commonly viewed as the engine room of our economy and their activity typically reflects that of the wider market. Of course, data alone can't tell the whole story or pick up on the nuances involved in dealmaking, but it provides essential insight into market sentiment. This report explores data provided by Beauhurst, with additional context given by the Cripps corporate team on the ground.

As the leading law firm in the South East, Cripps has been a longstanding champion of ambitious, high-growth businesses in our region. In the last year experience has shown us that the main priority for many entrepreneurial businesses is cash flow and managing the day to day operations, but management teams will also be thinking about longer term expansion and possible exit strategies. Understanding market conditions and what investors are looking for will help inform decision making and help manage risk. Having worked on over 40 deals in 2023, with transactions ranging from £1m to £100m+, Cripps is well placed to discuss these issues with business owners and investors alike.

To find out more about how we can help or to discuss any of the issues raised in this report, please get in touch.