Opportunities abound in 2025 after “record-breaking” Q4
A “record-breaking deal volume in the final quarter” of 2024 indicates the UK company sales market is buoyant for business owners planning to seek investment or an exit in 2025.
The aforementioned statement is from global consumer data analyst Experian, within its UK and Ireland M&A Review for 2024 – in which K3 Capital Group, the parent company of KBS Corporate, was ranked No.1 overall and in six of 10 UK regions.
Experian reported “a surge in deal activity in the final quarter – a significant acceleration that shifted the UK M&A market into growth territory year on year. There were 7,492 transactions announced last year, up by 11% from the 6,762 deals agreed in 2023 and representing the UK’s highest annual volume since 2018”.
Furthermore, October 2024 stood out “as the busiest month for deal-making on Experian record”, with business owners eager to complete their exit before the Autumn Statement in anticipation of a significant rise in Capital Gains Tax.
Ultimately, however, the rate of CGT rose only 4% to 24%, which means the company sales landscape remains favourable – especially as shareholders can continue to benefit from Business Asset Disposal Relief, which reduces CGT to 10% on the first £1million of gains (14% from April 6 2025).
October was certainly a particularly busy month at company sales specialist KBS. Among the numerous transactions we completed were private equity investment into Wirral Roofcare; the sale of Callisto Pharma Group to a global life sciences group; and the sale of PDJ Vibro to an American surface enhancement specialist.
“The rise in big-ticket M&A that has been such a major feature of the UK M&A landscape over the last year continued in the quarter, amid a more stable financing outlook,” added the Experian report.
“This uptick in high-value mergers and acquisitions significantly increased total UK deal value in 2024 to £287bn, up by some 44% on a year-by-year basis.”
In keeping with wider reports that private equity activity is poised for a significant upturn, Experian reported that “the total value of PE-funded deals was up to £94bn, from £58bn in 2023 and representing 33% of total UK deal value”.
Regarding specific industries, each of the leading 10 sectors highlighted by Experian showed an increase in the number of deals from 2023 to 2024. Among these were some particularly substantial gains, including hospitality (up 25%), healthcare (20%) and construction (14%).
Check out the full Experian report here. If you would like any advice regarding plans for the future of your company, in relation to investment or an exit strategy, contact us today.