We’re pleased to announce haysmacintyre’s Deals Roundup for 2023. Despite difficult market conditions in 2023, we saw a number of successes for our clients on IPO and M&A transactions, across the Creative, Media & Technology, Corporate and Hospitality sectors.
The outlook for IPOs and M&A deals in 2023 looked uncertain; the amount of cash raised through IPOs in London plunged by 90% in 2022, and the trend for both declining M&A and IPOs continued into 2023. Despite this, there’s an expectation of a slightly more positive outlook for the UK’s private and public equity markets into 2024, supported by the FCA’s proposals to reform the UK listing regime and more stable access to debt financing as interest rates are expected to settle. It is encouraging to see the FCA have taken this initiative, albeit somewhat forced by the high-profile decisions of firms to list overseas. We hope these proposed simplifications will support the UK’s attractiveness as a capital markets hub and help close the valuation gap between UK listed companies and their US listed peers.
The UK Government pension fund deal, announced in July 2023, suggests that a portion of the £50 billion of additional pension fund assets for unlisted UK SMEs, may be deployed through quoted (as opposed to listed) exchanges, such as AIM or Aquis. Such growth capital is essential to keep the London markets relevant and attractive for IPOs in the future. In the private markets, as this growth capital begins to be deployed, it represents a significant opportunity for start ups and scale-ups that require funding.
Going into 2024, it is expected that strategic buyers’ efforts to bolster supply chain resilience will continue as geo-political tensions remain high. Successful buy and build strategies became increasingly visible throughout 2023 with the financial and professional services setting the tone. We anticipate that the buy and build model will be a core strategy for many other fragmented sectors and provide support for M&A activity as we enter 2024.
Our Transaction Advisory Services team are focused on your success, and we will work collaboratively with you and other parties to ensure deal integrity, by integrating with your business objectives seamlessly and providing a commercial perspective that goes beyond just getting the deal done.
Download our Deals Roundup below.
