In the July edition of UK Private Company Director, Jim Keeling reflects on the market activity of buying and selling private UK companies in the first half of this year, sharing an optimistic outlook supported by promising data.

The larger deals sector, often a lead indicator of investor sentiment, has risen to its highest level in two years and we continue to see robust volumes in deals under £150 million, reflecting steady interest in smaller companies.

Our experience mirrors this momentum. In the past six months, we closed several notable deals, including a £100 million growth investment in QX Global Group from Long Ridge Equity Partners, the sale of Native Places to NUMA Group, and the sale of Drake & Farrell to B.V. Logicall Trusted Logistics. We expect more deals to close in the coming months.

Market sentiment is decidedly optimistic, a trend underscored by our latest quarterly survey. Anticipated interest rate cuts by the Bank of England could further boost deal activity, prompting buyers to capitalise on new prospects.

While political changes and global elections pose uncertainties, the UK's new government, with its strong majority, is committed to business-friendly policies. However, its long-term impact is yet to be seen.

For business owners planning an exit and concerned about the broader environment or potential Capital Gains Tax increases, seeking expert advice is crucial. We are engaging in many conversations with business owners about their exit strategies, reflecting the market’s vibrancy and the proactive measures many are taking.

With over 30 years of experience navigating various political and economic landscapes, we remain confident that all participants – owners and advisers alike – will adapt and continue to get business done.

Read the newsletter here.