It is being reported in various M&A news sources that the UK mid-market continues to display a cautious but steady increase in market confidence. Maven Partners’ meetings with our own M&A and private equity contacts are endorsing this.
It appears debt availability is increasing, particularly for those houses that have historically not pushed the envelope of high-leverage.
The healthy amount of deals being done by houses such as ISIS, ECI and LDC (three houses in broadly the same market) suggests that there are more businesses coming to market, which should also ensure price expectations take a longer-term view, again stimulating activity.
It would be ambitious to say that a market recovery is in full swing, as deals are still only at the levels they were in 2009 (circa 500 transactions per quarter, with circa 20% being PE transactions). However, this surge of deals in the lower mid-market will likely start to drive transactions further up the enterprise value scale, as banks once again get an appetite for deals that deliver.
This will naturally have a positive effect on the human capital side of the industry; more funds spent will ensure further funds are raised which, with more opportunities across the desks, will mean there is a need for investment professionals.
Additionally, with some houses utilising interim management in nearly all their deals, and others changing management in half of their portfolio companies, there will be an increased need for financial officers who understand integration and PE strategy.
If you are looking at recruiting into your own fund, or indeed if you are looking to move into private equity or M&A advisory, Maven Partners would be delighted to have a confidential conversation with you to discuss your options. Additionally, we would love to hear your views on the market…please visit our new networking group ‘Maven Partners: The Corporate Finance Network’ and let us know what you are seeing.
Richard Matthews | Associate Partner | Maven Partners
Richard has 8 years of M&A and PE advisory experience, having spent 6 years as an advisor in the M&A team of BDO LLP, a leading mid-market deal team, and the last 2 years as a start-up principal and interim investment manager to private equity and listed businesses.