Is 2021 a good time to sell?
M&A Market Activity Report H1 2021
The latest Experian Market IQ report has been published providing an insight into M&A deal volumes and values for the first half of 2021.
Activity in the market (from our perspective as an adviser) doesn't appear to have been hugely affected by the pandemic over the last 18 months.
We've delved deeper into the data to see how the first half of 2021 compares to the same period in 2020, and also pre-pandemic in 2019.
In the main, the comparisons are encouraging and demonstrate a buoyant M&A market for any company owner pondering an exit now or in the near future.
Looking at the figures...
The first comparison we looked at was Deal Value. The biggest takeaway is that H1 2021 is out-performing the pre-pandemic values of 2019 in all but the Real Estate sector.
Infocomms has been virtually unaffected by Covid, and if anything, activity increased during the two lock-down periods during 2020. Although value has dipped slightly in the first half of 2021, the sector remains extremely attractive for buyers and investors.
Last three years M&A activity by
Deal Value (H1 Comparisons):
| Sector | H1 2019 (£m) | H1 2020 (£m) | H1 2021 (£m) |
|---|---|---|---|
| Infocomms | 21,053 | 55,865 | 54,028 |
| Manufacturing | 23,919 | 27,940 | 37,408 |
| Professional Services | 9,161 | 12,293 | 33,033 |
| Wholesale & Retail | 16,629 | 23,657 | 30,470 |
| Financial Services | 28,932 | 21,178 | 41,668 |
| Support Services | 4,128 | 6,695 | 12,779 |
| Health | 834 | 433 | 7,210 |
| Construction | 5,131 | 3,691 | 4,200 |
| Real Estate | 13,875 | 12,796 | 7,626 |
Data provided by Experian MIQ Reports
Next, we looked at Deal Volume, and as mentioned above, Infocomms continues to lead the way as the most active sector for number of deals.
An encouraging observation is that all sectors in H1 2021 are beating H1 2020 which demonstrates a level of confidence returning to the market.
Last three years M&A activity by
Deal Volume (H1 Comparisons):
| Sector | H1 2019 | H1 2020 | H1 2021 |
|---|---|---|---|
| Infocomms | 812 | 740 | 901 |
| Manufacturing | 795 | 568 | 723 |
| Professional Services | 659 | 584 | 827 |
| Wholesale & Retail | 613 | 403 | 570 |
| Financial Services | 1,237 | 463 | 556 |
| Support Services | 344 | 271 | 386 |
| Health | 208 | 130 | 183 |
| Construction | 244 | 162 | 232 |
| Real Estate | 271 | 144 | 155 |
Data provided by Experian MIQ Reports
Here at La Salle, we witnessed an increased demand for businesses during 2020 in the unaffected sectors, namely Infocomms, Manufacturing, and Health Care. Looking at the figures above there's no surprise.
We are also glad to report that now in 2021, enquiries and interest from investors and trade buyers alike, is returning to pre-pandemic levels across all the sectors we work with.
Looking ahead...
The last 18 months have provided ample time for reflection, and as mentioned previously, if you are flirting with the idea of selling or would like to know more about what exit opportunities are available, get in touch with the team here at La Salle.
We are more than happy to explore your exit options and show how our Partner-led service can be of real benefit to you.
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