PM+M partner Jim Akrill provides a roundup of the deals market in 2020, and what this might mean for the year ahead…
Data recently released by Experian showed that 2020 was a positive year for the North West deals market, despite COVID-19, with the value of deals reaching £15 billion.
However, this number was bolstered by four very large deals and the data showed that overall activity was down. Large and mid-cap deals held up but deals of less than £10 million saw a significant decrease, being 26% down in volume and 41% down in value overall.
Despite this, all signs suggest the first half of 2021 has significant potential with regards to deal activity. The deals pipeline is strong and for many companies who have shown resilience through the pandemic, it will be considered a great time to get deals done. For those business owners wishing to sell, now would be a good time to think seriously about what you can do now to ensure you’re ready for when the market does turn.
Engaging with an experienced corporate finance adviser who will tell it like it is and not be afraid to say “not now” is key, especially in the current climate. Don’t be swayed by anyone who promises to get you top dollar when the market data clearly says otherwise.
Ultimately, buyers are looking for reassurance that their investment will deliver the perceived returns, hence now is a great time to place your efforts into proving that this is true of your business, making it more attractive for sale in the future.
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