M&A activity is continuing to surge

mergers and aquisitions


The recent surge in M&A activity shows no sign in abating. If you are considering a merger, acquisition or sale, make sure you do your homework in advance.

Why is M&A activity surging?

As recently reported by EY and others, the UK M&A appetite remains strong. There are a host of factors driving M&A activity, from low interest rates, rising equities, pent up demand, distressed sales resulting from the pandemic, through to increased dealmaking interest in businesses that have thrived during the pandemic.

Additionally, the pandemic propelled people into increased digital consumption. As a result, technology is playing a vital role across many industries and this digital acceleration has created many M&A opportunities. A merger may offer the opportunity to increase market share and reduce employment costs. For a younger business it can help propel them to the next level.

Preparation is key

If you are considering selling your business or merging with another business, what are the key things to think about?

  1. Firstly, you need to be able to clearly show the value and the potential of your business. Having a clear strategic vision is important. Your potential buyer or partner will want to see how the transaction can add value to your business and the acquirer or new business partner.
  2. Identify your prospective buyers and make sure you understand your business from their perspective – identify your strengths and look at how to mitigate any weaknesses so you can show your business in its best light. There are intermediaries who can help you market a business who will have a good understanding of the processes and market value in different sectors.
  3. Gather your team together at an early stage – your legal and financial advisers together with your inhouse management team that will work on the deal.
  4. Due diligence is a vital part of the acquisition process for both the seller and the purchaser. The more preparation you do at any early stage the smoother the process will be. Sort all financial documentation, make sure employment contracts are up to date, review your Ts & Cs and supply agreements etc. All businesses have intellectual property ranging from research and development, through to patents, data or even a brand mark. These should all be adequately protected.
  5. Don’t forget tax implications. There are various ways to sell or merge a business. There are different tax implications for each path, so you need to consider carefully the tax payable under each option to ensure you maximise tax efficiency.

Pictons – supporting you throughout

Pictons’ commercial team provide specialist expert advice on:

  • Buying or selling a business or its assets
  • Private equity transactions
  • Group reorganisations and share capital reconstruction

We work closely with you to support you at every stage of the transaction from due diligence, structuring, preparation and negotiation of the deal documents through to providing post-completion support.

Please contact our team if you would like to discuss a business sale, merger or acquisition.

T: 0800 302 9448

E: info@pictons.co.uk