News

As we approach the end of 2023, it’s time to reflect on another dynamic year for the mergers and acquisitions (M&A) market in the North-West of England and Yorkshire. Despite ongoing economic challenges, the region has continued to demonstrate its resilience and attractiveness to buyers and investors alike. At Frazer Hall, we specialise in facilitating sales of businesses between £2m and £20m, and this year has been marked by strong activity across multiple sectors.

A Year of Strategic Transactions

2023 has been a year defined by strategic acquisitions and thoughtful investments. Businesses within the £2m-£20m turnover bracket remained highly sought after, particularly those with strong cash flows, scalable operations, and robust management teams. The North-West and Yorkshire’s diverse economic base ensured a steady flow of opportunities, with buyers showing keen interest in sectors such as manufacturing, technology, professional services, and healthcare.

One of the standout trends of the year was the increasing involvement of private equity firms in the mid-market space. With ample funds and a focus on long-term value creation, private equity buyers have been active in acquiring businesses with growth potential, particularly in fragmented industries.

Sector Strength and Diversification

The M&A market has remained robust across many industries. The manufacturing sector, a cornerstone of the North-West and Yorkshire economies, saw strong activity, particularly among businesses with innovative technologies or export capabilities. The technology sector also continued to thrive, with software developers and IT services providers attracting significant interest from both trade buyers and private equity investors.

Professional services firms, including accountancy practices, legal firms, and consultancies, have also been active in the M&A space. Many of these businesses have sought to consolidate their market positions or diversify their service offerings through strategic acquisitions.

Navigating Challenges and Seizing Opportunities

2023 has not been without its challenges. Inflationary pressures, rising interest rates, and geopolitical uncertainties have created a complex environment for buyers and sellers alike. However, these challenges have also presented opportunities for well-prepared businesses. Sellers who have invested in operational efficiency, digital transformation, and customer diversification have been able to achieve premium valuations.

For buyers, the market has offered a chance to acquire high-quality assets at reasonable multiples. The retirement sector, in particular, has been a safe haven for investors seeking stability and long-term growth.

Looking Ahead to 2024

As we look ahead to 2024, the M&A market is poised for continued growth. While macroeconomic uncertainties may persist, the region’s strong economic fundamentals and diverse industry base provide a solid foundation for future activity. The retirement sector is expected to remain a key driver of deals, while emerging sectors such as renewable energy and digital transformation are likely to attract increasing interest.

At Frazer Hall, we are committed to helping business owners navigate this evolving landscape. Whether you are considering a sale, exploring acquisition opportunities, or seeking advice on how to position your business for growth, our team of experienced advisors is here to guide you every step of the way.

If you would like to discuss your options or learn more about the current market, please don’t hesitate to get in touch with the team at Frazer Hall.

Stephen.frazer@frazerhall.com
Graham.niven@frazerhall.com
Joe.frazer@frazerhall.com