Overview
While deal activity was subdued in 2023 owing to macroeconomic factors, the South East still fared well relative to the rest of the UK.
The region was second only to London in terms of the number of deals done. The tech sector continues to reign supreme when it comes to industry attractiveness, with both 'analytics, insight and tools' and 'SaaS' both featuring in the top three most active sectors. The food and drink sector also stood out with a higher proportion of M&A activity in the South East than any other region In the UK. This is in part owed to the South East being a vibrant hub for producers, particularly in Kent.
Given how profound the impact of the macroeconomic environment has been on acquisition volumes in the last couple of years, it’s unlikely that we will see a rapid recovery in 2024 and will need to be patient. That said, distressed conditions can make some form of M&A a necessity. A new normal every year in recent years means buyers and sellers alike have learned to adjust quickly to a changing market. There have already been three acquisitions of SE-based high growth companies in 2024; with its strong population of equity-backed, grant-backed companies and plenty of scaleups, it’s not unreasonable to expect many more.