What can we expect from the South East M&A market for the rest of 2024?
Conclusion
The world is still recovering from multiple geopolitical events, including conflict and elections, which continue to create macroeconomic uncertainty for everyone. How businesses navigate this uncertainty will likely define their success in the coming years. This is true of all entities, whether it’s growing a business in a competitive space, or aiming to buy future-proof companies with the right business models. While we are seeing M&A activity grow in the South East, particularly for technology-related businesses, the next 12 months will show whether it can be sustained. What’s certain is that technology will continue to play a vital role for both buyers and sellers. AI regulation in the UK is very likely, but when and, in what form, is currently unknown. H2 2024 will see the world adjust to a potentially new political landscape, especially in the UK and US. Once there is more clarity on the focus of these governments (including tax), business owners in particular will benefit from certainty and predictability.
Methodology
High-growth companies
This report focuses on the M&A activity of high growth companies in the South East. Beauhurst identifies high growth businesses using eight triggers that they believe suggest a company has high growth potential. These include: equity investment; debt investment; accelerator programmes; scaleup status; MBOs/MBIs; innovation grants; 3rd party high growth lists. More details on Beauhurst’s tracking triggers are available at beauhurst.com.
In scope events
This report focuses on M&A activity, where either the acquired company or the acquiring company is headquartered in the UK's South East region, which includes Kent, Surrey, Sussex, Berkshire, Hampshire, Oxfordshire and Buckinghamshire. For an acquisition event to be captured, either the acquired or acquiring company must currently, or previously, have met one of Beauhurst's tracking triggers or be captured via news articles.
Acquisitions
An acquisition occurs when a company sells the majority (>50%) of its existing shares to another company or a fund.