Home Business UK200Group Corporate Finance – 2022 M&A deal volumes flatline but average deal size decreases £800,000
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

UK200Group Corporate Finance – 2022 M&A deal volumes flatline but average deal size decreases £800,000

by uma
gawdo

 

M&A deal size has fallen in the last 12 months from £7.1 million to £6.3 million.

Deal volumes have remained broadly the same as in previous years according to the latest analysis from the UK200Group’s 2022 Small and Medium Enterprises (SME) Valuation Index.

The Index analyses a representative sample of M&A deals over the last 12 months to understand how deal value has changed against a challenging economic backdrop. It is a collaboration between Mark to Market and the UK200Group.

The data is an invaluable resource to SMEs, corporate financiers, forensic accountants, insolvency practitioners, investors, banks tax planners and expert witnesses who work with these enterprises.

The analysis showed that 60% of transactions were trade sales, 15% MBOs and the rest were a mix of PE, VC, and other transaction.

Michael Watts, partner corporate finance, Haslers and Chair of the UK200Corporate Finance Panel, says:

“Our analysis highlights the fact that acquirors are understandably cautious and want to understand what ‘maintainable earnings’ are going forward. Given the unprecedented events of the last three years it can be difficult to make accurate forward projections as while many companies have experienced tough trading conditions, such as hospitality, others have seen a mini boom e.g., logistics.

The data confirms the overarching caution as the median EBITDA and the median P/E multiples fell from 6.0x to 4.9x and from 7.6x to 6.4x respectively in 2022. The mean EV/EBITDA multiple has also fallen to 5.4x from 6.6x. At a 95% confidence. EBITDA multiples are occurring in the range of 4.5 – 6.2x. The mean P/E multiple decreased to 7.1x from 8.9x. At a 95% confidence level, P/E multiples are occurring in the range of 5.9 – 8.3x. I would expect similar caution in 2023 until long term economic certainty becomes clearer.”

 

www.gawdo.com

You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More