BDO tops M&A league tables
BDO LLP was named as the most active M&A adviser in the UK in the 2011 financial adviser league tables published by Experian Corpfin.
This encouraging result was underpinned by a significant number of cross border deals coupled with strong private equity related deal flow. The Experian Corpfin data recorded a 10.9% increase in the value of transactions in 2011 which supports BDO’s view that despite the challenges faced, corporate and private equity buyers acknowledge fair value and are prepared to invest where they see the possibility for growth.
The Eurozone crisis and other factors have all prompted a major build up in corporate cash balances over recent years. It has been estimated that the largest 100 companies in the UK have amassed over £120 billion in cash and this trend of building up cash reserves is being repeated across the wider business community. European private equity (PE) also has some £100 billion of un-invested funds and recent research from BDO into UK PE houses highlight that more than 50% of the PE investors in the UK want to increase their deal volumes in 2012.
The collective impact of significant private equity firepower and the build-up in corporate cash reserves is translating into appetite for acquisitions, particularly for small and mid market opportunities up to £300m requiring less debt funding.
Commenting on the market and outlook for 2012, Peter Hemington, Head of M&A at BDO LLP, said:
“While we see no quick solutions to the Eurozone crisis we do see that there is availability of funding for M&A. Unlike sovereign states, private equity and corporate balance sheets are fundamentally strong and liquid and so we expect to continue to be busy in 2012 as we seek out maximum value for our clients. As the Eurozone issues persist we also expect overseas companies to favour acquisitions in the UK rather than the Eurozone which should be good news for UK vendors.”
