Hazlewoods corporate finance team is delighted to report that it completed deals worth an impressive £436 million in the first nine months of 2020.
Following a number of pending transactions being ‘put on ice’ at the end of Q1 as the UK entered lockdown, deal volumes have bounced back in Q3, a trend which is continuing into Q4.
In the last few months, the team has seen a number of private equity houses and trade buyers actively seeking acquisition opportunities, mainly comprising bolt-on businesses to existing entities. The Chancellor postponing any increase in capital gains tax (which is under consideration for reform) has also helped deal flow, with sellers looking to secure existing rates of tax ahead of the spring budget.
For those businesses that have performed well during the pandemic, higher than usual valuations can be obtained, indicating that resilient businesses can attract a premium.
In the first nine months of the year, we advised on 69 completed transactions, including 39 deals which completed after 16 March when the UK first entered lockdown. The total combined value of the transactions was £436,543,000.
Paul Fussell, Corporate Finance Partner said, “Whilst COVID-19 has suppressed some M&A activity, investors are still seeking quality assets, while others are looking to take advantage of opportunistic acquisitions.
“Although deals in certain sectors have been put ‘on hold’, new ‘hot’ sectors have emerged”.
We are the most active corporate finance adviser in the South West and last year completed 205 deals with a value of more than £1 billion.