East Midlands M&A Overview
Euan Begbie shares insights into the Mergers & Acquisitions market over the last 12 months; and with the input of Breeze Corporate Finance, looks into what 2025 has in store.
East Midlands M&A Overview
Euan Begbie shares insights into the Mergers & Acquisitions market over the last 12 months; and with the input of Breeze Corporate Finance, looks into what 2025 has in store.
Deals Market Across the East Midlands
My core market is the ever-expanding network of growing SMEs across the East Midlands. Almost 50% of my CFO & FD appointments over the past year have been made into roles created through growth or a transaction of some description.
Pratap Executive launched to position us alongside these growing SMEs. This has increased our focus and further grown our relationship within the M&A market. Spending more time with the Investors and Advisors and investing in new technology to analyse the volume of deals across the region.
In 2024, M&A activity in the East Midlands was influenced by a number of key external factors:
- Economic Conditions - Inflation and high interest rates increased deal financing costs and impacted valuations.
- Government Policies - Changes in tax regulations and sustainability initiatives.
- Global Uncertainty - Political tensions added complexity to deals.
- Sector Trends - Manufacturing remained resilient whilst technology and Biotech/Pharma saw a surge.
These factors helped to shape a very dynamic but slightly cautious M&A market in the region.
Our Analysis of the East Midlands M&A Market
Over past year, we have tracked or recruited for the following;
- 12 MBOs
- 22 PE / VC investments
Of these, the most prolific sectors were:
- Technology
- Manufacturing
- Biotech/Pharmaceutical
2025 Outlook
We spoke to the team at Breeze Corporate Finance to get their outlook on the deals market for 2025.
We expect to see deal delivery normalising in 2025.
Tech, Infrastructure Services and Professional Services have led the way for us in 2024. Unsurprisingly, Construction, Industrials and the Built Environment have been relatively inactive markets.
We have not seen huge changes in the funding market. A gradual reduction in base rate over the medium term will give encouraging signs for people to do more. The value of the £ overseas has certainly helped our international buyers. In general terms, a keenness from overseas corporates to have a presence in the UK remains clear.
The continued focus on diligence from Buyers also heightens the need for our clients to be ‘deal ready’ and this is always a key priority for us at the outset of each client relationship.
Paul Bevan – Managing Director, Pete Wood – Director, Nigel Winkett - Director
Our last word
The East Midlands M&A market in 2025 is poised for a vibrant year, driven by resilience, innovation, and strategic opportunities across key sectors. Despite recent economic challenges, the region has demonstrated remarkable adaptability, positioning itself as a hub for investment and growth.
External news links
BDO is expecting activity levels in the Midlands "to exceed those seen in 2024"