Mid-market and bolt-on deals set to drive private equity M&A

Despite declining in the first half of the year, private equity M&A is expected to increase over the coming months. What will this revival in activity look like?

In an exclusive September insight, we look at the impact of private equity in UK M&A so far this year and how this is influencing the short term outlook.

Members can read the full report here

For several years now, private equity firms around the world have been sitting on vast cash reserves. These warchests have been amassed while firms pursued dealmaking more cautiously amid shocks such as COVID-19 and Russia’s war in Ukraine.

In the UK, this trend has persisted so far in 2024, with PE dealmaking down by a fifth compared to the first half of 2023. However, with economic uncertainty easing and a new government in place, there is an expectation that PE activity will recover over the coming months.

Caution is likely to remain paramount, even if activity increases sharply – meaning that private equity firms could continue to target bolt-on deals and mid-market acquisitions over high-value platform investments.

This could provide significant opportunities for UK SME owners to attract investment or secure a profitable exit, or for consolidators of micro businesses to rapidly build a small company that might become a target for a private equity portfolio firm.

However, it will be vital for small business owners seeking to benefit from resurgent private equity activity to be aware of what will guide private equity dealmaking. What will they be looking for in a potential acquisition? What sort of sectors will they be most active in?

Find out more about how a resurgence in private equity dealmaking might take shape by reading our exclusive full-length insight, in which we examine:

The shape of private equity dealmaking in the UK at the mid-point of 2024

Factors that will continue to impact activity for the time being

Why bolt-ons and mid-market deals are so attractive to PE firms

The top sectors that could drive a recovery in PE activity

The implications for UK small business owners

An exclusive link to a list of 200 private equity firms in the UK

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