There are significant opportunities for dealmaking this year despite a more challenging investment climate but a more “patient and flexible approach” will be needed, according to merger & acquisition specialists at BDO. Vinod Patel, transaction services partner at BDO, said: “Despite advising on 26 deals with a value of over £800m in the region, 2023 has, overall, been a challenging year for dealmaking, given the macro-economic headwinds and the increasing cost of capital, which has driven increasing caution from buyers.” He added: “Although M&A deal volume, both regionally and nationally, was down in 2023, significant opportunities remain and there are still deals to be done with excellent and exciting businesses in the region that continue to attract the attention of investors.”
John Gethen, M&A director at BDO, added: “The key to success in 2024 will be taking a more patient and flexible approach to fulfilling the potential that exists. With the investment climate proving more challenging, innovative and entrepreneurial businesses must be well prepared regardless of their market segment.” Last year more than a third of BDO's advisory activity in the region involved private equity.
Separately, the logistics sector – a key area for the East of England linked to the region’s ports and shipping industries - may be well-placed to see a further boost to merger and acquisition activity in 2024. BDO says global companies across the sector are focusing on UK opportunities, with a resurgence of international investor appetite.
Photo: John Gethen and Vinod Patel.
