One month post "Liberation Day", U.S. tariffs impacted economic growth while creating uncertainty in the UK's economy. Nevertheless, mid-market M&A activity has remained stable, with S&W closing 385 deals in 2024. Corporate finance expert Mark Brockway notes that the current environment spurs some owners to sell, fearing future instability. The decline in interest rates has improved borrowing conditions, and private equity firms hold $2.1 trillion in uninvested capital, bolstering M&A prices in sectors like technology, fostering a sense of optimism amidst challenges.
Despite recent market challenges, we are on a good run-rate and have closed nine UK deals across a range of sectors in recent months.
Prices in some sectors like technology may have fallen from post-COVID heights but remain pretty good by historical standards.
The amount of dry powder, the uninvested capital held by private equity firms, is still $2.1 trillion globally.
Buyer appetite this year was initially buoyed by a more encouraging outlook as the rising interest rates levelled off and began to fall.
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