According to the latest analysis of the mid-market private equity sector, investment activity in the Midlands nudged up slightly in the first half of the year.
This suggests it has been unaffected by lingering macroeconomic pressures. In terms of mergers and acquisitions (M&A), a total of 33 mid-market transactions were finalised during the first six months of 2024 – a rise of 17% when set against the 28 transactions completed during the equivalent period in 2023.
Over the same period, however, investment values dropped by 21% to £1.9 billion, compared to £2.3 billion invested during the first half of 2023.
Across the UK, private equity investment activity in the mid-market segment fell by 11%, with 321 mid-market transactions concluded in the first six months of 2024, as opposed to 360 transactions in the corresponding period of 2023.
The data for the first six months of 2024 indicates an increase in activity of 17% on pre-pandemic M&A activity, a trend providing evidence that the market has now fully recovered to normal levels.
As such, British companies have been able to attract global buyers, with inbound deals making up an estimated 42% of M&A deals. Nearly 50% of buyers were from the US, looking to invest in emerging businesses and realise portfolio assets in a stabilised UK landscape.
If you are looking at opportunities for investment management in Oswestry or across wider Shropshire and the West Midlands, it is worth considering the healthy potential for the M&A market, with private equity firms and lenders both seemingly in the mood to complete deals.
