Midlands deal activity records strongest year to date
Deal activity reached record highs across the Midlands in 2022, as 1,068 transactions completed.
In an M&A report released by Experian, the data revealed Midlands deals had a combined value of £26.8bn, up by 22.6% last year and the volume of activity increased by 2.3% year on year.
The Midlands was the UK’s busiest region for deal making outside of London and the South East, with 15% of the total volume of all UK deals.
Mega deals valued at more than £1bn were up by 20% to six transactions, the largest king the acquisition of IT consultancy AVEVA Group by Ascot Acquisition Holdings.
Two mega deals were announced in the final quarter and both involved an exit by private equity investors.
The largest of these was the £3.8bn acquisition by Chart Industries, a US company that manufactures and supplies cryogenic systems, of Birmingham-registered Howden Group, a provider of missioncritical air and gas handling products, from exiting investor KPS Capital Partners.
Experian suggests that 2022 was a period for for big ticket exits and less private equity investment as there were six acquisitions, three IBOs, and a total of four deals with an exit.
Harrison Clark Rickerbys led the legal adviser rankings with 69 deals completed in the Midlands, followed by Gateley with 56 deals and Browne Jacobson at 50.
And K3 Capital topped out the financial adviser rankings, completing 52 deals, Grant Thornton came in second with 41 days and RSM followed with 29 deals.
Manufacturing deals remained consistent from 2021 to 2022 and kept the top spot for volume and value. Experian data revealed that whilst most sectors activity has remained steady, professional services deals dropped by 8% to 222 deals during 2022 and infocomms, which fell by 3.6% to 188 deals.
Whilst there was a decline in private equity funded transactions, debt funded deals increased by 6%, with the value up 34%.
The two most active debt providers were HSBC with 12 (totalling £49m) and Shawbrook Bank with nine deals, while SME Capital and Thincats both provided debt for eight transactions each.
TheBusinessDesk.com is hosting a Rainmakers breakfast seminar on April 25, to discuss the prospects for the corporate finance sector.
After a difficult end to 2022, the deals market is now in much more optimistic mood. Our panel will share their views on the health of the market and what they expect to see for the rest of the year, the challenges and trends that are driving or delaying activity, and the areas which are hotting up or cooling off.
Our panelists are:
– Tom Durrant, partner and head of Birmingham office, Squire Patton Boggs
– Khush Purewal, partner and head of deals for KPMG in the Midlands
– Sarah Taylor, partner, Clearwater International
– Andrew Skinner, director and head of Midlands, NorthEdge Capital
