Deal values rise despite a drop in merger and acquisition volumes

A report recently released by Experian has indicated that the volume of merger and acquisition transactions across the UK, Europe, USA and Asia Pacific region dropped by 8% in April 2015. The total number of deals fell from 1,838 in March of this year, to 1,787 in April.

Despite this drop in transactions, research has shown that the total deal value actually rose during the same period, from £199 billion to £216 billion, courtesy of a number of substantial deals that took place. In particular, figures have proven that the UK is leading the way in terms of the total deal value, showing that now is a great time to consider selling your business or at least considering how to sell your business.

The two main transactions that made up the UK’s total deal value included the acquisition of BG Group by Royal Dutch Shell for £47 billion, and Teva Pharmaceuticals Industries proposal to buy out Myland NV for an estimated £27 billion.

It is widely believed that the drop in the number of business owners completing their exit strategy in April may have been attributable to the general election in the UK. It could be that many businesses, both small and large, decided to sit tight and wait to see the results of the election before seeking the services of a company sales specialist to sell their business.

The total number of merger and acquisition transactions fell in the UK from 438 in March to 381 in April, a drop of around 15%. Research has also revealed that the total number of deals in the UK has not fallen below 400 since June 2013. Despite this brief downward dip, it appears that the UK’s financial services industry managed to buck the trend, with around a third of all deals in April originating from this sector.

Now that the election is over, it is believed that the number of deals will rise again, as owners begin to engage a suitable company sales specialist and to consider their exit strategy. If you are wondering how to exit your business, now could be an ideal time in which to discuss your options with the professionals.

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