Mid-market M&A value doubles in first half of
2010
In the first half of 2010, the number of mid-market transactions
has remained stable while the total value almost doubled
year-on-year, according to research analysed by Grant Thornton UK
LLP.
Looking at M&A transactions with a value of up to £500
million, this year saw 1040 deals with a total value of £17.8
billion. That is just 31 deals less than in the second half of 2009
and represents a 29% increase in the total value (H2 2009: 1071
deals valued at £13.8 billion).
Moreover, the total value of this mid-market segment increased
by 87% compared to the first half of 2009, when 941 mid-market
deals with a total value of £9.5 billion were recorded. The number
of deals also increased by 10.5% year-on-year.
"In the short term mid-market M&A is likely to remain
robust. Our recent survey of mid-market companies showed that 27%
expected to grow through M&A by the summer of 2011, and our
transaction pipeline is strong," said Stephen Baker, Corporate
Finance Partner at Grant Thornton UK LLP.
Foreign bidders have dramatically stepped up the number and
value of inbound mid-market M&A transactions to 350 deals with
a total value of £7.9 billion in the year-to-date. Both the number
and value are 19% higher than in the second half of 2009, when 293
mid-market deals worth £6.6 billion were announced.
But year-on-year, the value of foreign inbound deals more than
doubled (+120%), while the number of foreign inbound deals
increased by 31% (H1 2009: 267 deals valued at £3.6 billion).
"The data shows that British mid-market targets have become more
attractive to foreign bidders, with the relative weakness of
Sterling acting as a further incentive. In recent months our sale
mandates for UK-based Mettoni Ltd and Auriga Communications both
led to detailed negotiations with a number of potential
international buyers. The Mettoni group was eventually acquired by
Canadian based Enghouse Systems. Similarly, Auriga Communications
has been sold to the listed Canadian company Constellation Software
Inc," concluded Baker.
ENDS
For further information please contact:
Alexander Wessendorff, PR Manager Grant Thornton UK LLP, 020
7728 2048
Notes to editors:
*Deal numbers and values are non-seasonally adjusted and based
on announced deals, which offer the most current view of the
M&A market (although not all of these deals will be finalised).
Grant Thornton Corporate Finance analysed Thomson Reuters data on
25 June 2010.
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