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Reflecting on 2022
A Year of Resilience and Opportunity in the UK M&A Market
As we approach the end of 2022, it’s a fitting time to reflect on the past 12 months in the UK mergers and acquisitions (M&A) landscape. For our team at Frazer Hall, it has been a year of navigating challenges, seizing opportunities, and helping business owners achieve their goals.
A Dynamic Market Amid Economic Uncertainty
The UK M&A market in 2022 has been shaped by a unique mix of economic headwinds and tailwinds. Rising inflation, interest rate hikes, and geopolitical tensions created a cautious environment for some investors. However, these challenges were balanced by strong demand for quality businesses, particularly in the lower mid-market segment where we specialise.
Deals in the £2m to £20m range, which form the core of our expertise, remained robust. This was driven by several factors:
Retirement – exits: Many business owners, particularly in the small to medium-sized enterprise (SME) sector, chose to sell their businesses as they approached retirement. This trend has been a key driver of activity in our region and across the UK.
Strategic acquisitions: Larger companies and private equity firms continued to seek out smaller businesses to expand their portfolios, diversify revenue streams, or acquire niche capabilities.
Resilient sectors: Industries such as manufacturing, technology, and professional services saw particularly strong activity, as buyers recognised their potential for growth even in uncertain times.
At Frazer Hall, we are proud to have played a pivotal role in facilitating successful transactions for our clients throughout the year. Our deep understanding of the market, combined with our nationwide reach, has allowed us to connect buyers and sellers in a way that delivers value for both parties.
Looking Ahead to 2023
While 2022 has been a year of resilience, we anticipate that 2023 will bring new opportunities and challenges. Economic uncertainty may persist, but we believe the fundamentals of the UK M&A market remain strong. For business owners considering an exit, now is an excellent time to explore their options and position their companies for sale.
At Frazer Hall, we are committed to providing the expertise, guidance, and support our clients need to navigate the M&A process with confidence. Whether you’re a business owner planning for retirement or a buyer looking to grow your portfolio, we’re here to help you achieve your goals.
As we close out the year, we want to thank our clients, partners, and team for their trust and hard work. We look forward to building on our successes in 2023 and continuing to deliver exceptional results for the businesses and individuals we serve.