Value of M&A deals in South West plummets by 86 per cent over last 12 months
The value of deals in the South West plummeted by 86 per cent last year, according to the latest report from Experian.
The annual report on the M&A market in the region revealed that the number of deals in the region dropped slightly from 723 to 694 over the course of the last 12 months.
But the fact that the value of deals fell sharply was largely due to the fact there were fewer big ticket deals over the last 12 months.
Jane Turner, research manager at Experian, said: “M&A in the UK slowed slightly last year amid challenging conditions, but deal flow remained healthy and market sentiment was by no means doom and gloom.
“There was robust year on year growth in key industry segments – with booming activity in the tech, healthcare and hospitality sectors.
“Regionally, several parts of the country bucked the trend to enjoy record breaking transaction volume in 2022, boosted by strong cross border M&A both on the inward and outbound side, along with a vibrant private equity sector – testament to the resilience and flexibility of the UK M&A market, as deal makers adapted quickly to the new normal.”
Annual M&A volume in the UK declined slightly in 2022, with 7,080 transactions announced over the year – down from 7,210 in 2021.
In the South West the small cap value range proved most resilient, and in fact saw a welcome rise of just under 19 per cent in volume and seven per cent in value.
Mid-market and large cap deals struggled to rally in the same the way, with the mid-market most impacted – deals were down by 42 per cent in volume and 48 per cent in value.
Large deals fared slightly more favourably, with a 13 per cent fall in volume and 36 per cent fall in value.
Whilst acquisitions continued to drive much of the activity, companies seeking growth capital were up 16.5 per cent in volume, with the tech sector attracting the bulk of investment.
The biggest deal of the year was the £457m outbound acquisition of US-based Dynapower Company by Royal Wootton Bassett-registered Sensata Technologies.
There were two overseas acquisitions for Cheltenham-based Spirax-Sarco Engineering, which now has a direct sales presence in more than 67 countries.
The most active law firm in the market was Harrison Clark Rickerbys and BDO was the busiest financial adviser.
