Welcome to the latest edition of the Cripps South East M&A Barometer, a quarterly review of M&A activity of high-growth companies in the South East. It provides a snapshot of how the South East compares to the rest of the UK market, where either the acquirer or the acquired company hits at least one of eight triggers that suggest a company has high-growth potential (see methodology).

The first half of 2024 presented several forms of macroeconomic uncertainty in the UK. While a drop in interest rates has been consistently priced in by investors, this has only just materialised. Political uncertainty persisted, and the announcement of a general election towards the end of the period put a pause on some investment activity. The prospect of a Labour government also reinvigorated the conversation around carried interest and the taxation of private assets, which would, some experts consider, risk a downturn in private equity investment. Overseas acquirers also contended with domestic political instability, notably with forthcoming elections in the US and France; but these nations were among the biggest foreign acquirers of UK businesses, demonstrating a continued appetite for UK businesses among overseas investors.

So far, we are not seeing the predicted recovery for M&A activity in the UK. This said, the South East appears to have bucked the trend showing a higher volume of deals in H1 2024 (125) compared to the previous year (101). The South East was also the most active region for M&A outside London and deal volume continues to be driven by the technology sector.

As the data shows, appetite for tech businesses in the South East remains strong. For tech-related businesses, now is a good time to consider expansion options, whether that be debt or equity finance, M&A activity or international expansion.

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.