UK M&A Activity Q4 2023

Sector Trends

B2B and B2C sectors delivered volume growth from Q3 23, increasing by 24% and 22% respectively. B2B saw a notable 151% deal value growth to £10.9bn, partly skewed by the £2.2bn acquisition of The Property Franchise Group by Belvoir Group, operators of resident property franchising.

Healthcare and TMT again proved resilient sectors with deal values increasing by 156% and 49% respectively (£18.5bn and £18.2bn) whilst volume dropped by 9% and 1%. These results highlight the resilience of multiples within these industries, proving attractive to Private Equity and Strategic buyers alike.

Neil Mitchell, Partner

“From a Rickitt Mitchell perspective, the Q4 2023 improving M&A backdrop highlighted above has continued into Q1 2024 and looks likely to continue on this trajectory based on our own pipeline. 

More broadly than the pulse of the Rickitt Mitchell engine room, inflation appears to be tapering and the figures for the year to January (4%) coming in slightly under consensus will help fuel expectations of interest rate cuts during the year.  This in turn can be a helpful catalyst for M&A activity as cash flow constraints ease and the financing support needed for deals becomes more predictable, if not indeed more keenly priced.  At present we see the UK General Election as a fairly benign event for the UK M&A market, pending surprises in the March budget and voter seeking polices that may be thrown out over the coming months.  Our view is that the US Presidential election result has more potential to impact the economy and hence deal activity in the medium term.