After a strong second quarter, private M&A activity appears to have softened over the past three months. Yet, as Jim Keeling notes in the October edition of UK Private Company Director, many deals are still progressing, and 2024 is shaping up to be an active year overall.

With the Autumn Budget just around the corner, you may be wondering how speculation around potential policy changes — including a possible increase in Capital Gains Tax — could affect the M&A market. While some sellers are delaying their plans in anticipation of the Budget, others are keen to act now to mitigate against any potential increases. The good news? Well-prepared businesses are thriving, and buyers remain actively interested, particularly in companies with strong growth potential.

Looking at the bigger picture, while there’s understandable caution in the market, the outlook is more optimistic than it may first seem. Inflation is easing, and potential interest rate cuts could make debt more affordable, keeping buyers interested, especially from overseas.

Reflecting on Corbett Keeling’s 30 years in the industry, we’ve seen many political and economic shifts. Despite the challenges these changes bring, the private M&A market always finds a way forward. Deals get done, businesses are sold, and capital is raised — regardless of broader economic conditions. The key takeaway? Well-prepared businesses fare best. If you’ve taken the time to get your house in order, you’ll be in a stronger position to act when opportunities arise — and they do, even in uncertain times.

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