Cross-Border M&A Including UK Companies

Cross-border activity continues to be a key component including companies seeking to spread risk during times of uncertainty.

In 2017 Cross-border deals amounted to 41.9% of global M&A value with seven of the top ten largest deals being cross-border with Europe accounting for 29.6% of global M&A[1].

Despite Brexit uncertainty, transactions involving UK companies with foreign companies still amounted to over 23% of UK deal volume in 2017[2]. There were 1,383 UK inbound transactions in 2017, only slightly down from 2016’s high of 1,428[3].

The US remains the largest source of international investment in the UK, with our closest Western European neighbours and Canada and Australia behind.

5a UK Inbound Deals.png

Although China falls further down the list of inbound UK M&A buyers, China & Hong Kong continue to view the UK as a top destination for their investment completing 79 UK deals in 2016 and 66 in 2017.

The UK is of particular interest to buyers due to low UK tax rates and credits, our skilled workforce and flexible labour laws.

For lower middle-market companies we recommend marketing your business to overseas buyers if your turnover exceeds £5m. One of our recent clients thought they knew their market and their likely potential buyers. We managed the sell-side process for the business through the Translink International Network and brought bidders to the table that our client wasn’t aware of. The business ended up being sold to an international company and through competitive tension we were able to achieve 185% of the minimum deal value set by our client.

If you are considering selling your company, we recommend marketing it internationally to generate competition and drive up deal value. Lots of overseas companies are looking to gain or expand their presence in UK and acquire our British technology.

To find out more about our M&A service contact us by calling 0116 344 0443 or email enquiries@translinkcf.co.uk

 

[1] Mergermarket

[2] MarketIQ

[3] IMAA