Oghma Partners finds M&A volumes increased by 32.4%

In T2 2024, deal volume reportedly increased by 32.4% compared to the same period last year, with 49 transactions. The estimated deal value also rose to approximately £6 billion as industry saw larger deals between companies such as Newlat and Princes.

The grocery category was amongst the most active, representing 24.5% of total volume. Around 61.2% of total deals were valued at £10 million or less, with few middle to higher market transactions. Oghma said 14.3% of deals exceeded £50 million, half of which were above £100 million.

Oghma said the ‘Other’ category had seen a “substantial increase”, with pet food driving the acquisitions. It stated that one notable deal was Inspired Pet Nutrition’s acquisition of Butchers Pet Care, as the category accounted for 22.4% of transactions, up from 4.7% in T1 2024.

Outlook is “largely positive”

Mark Lynch, partner at Oghma Partners, said: “Looking ahead, the short to medium term outlook is largely positive. We expect deal volume to continue at these levels supported by improving economic conditions.

“The potential for further rate cuts by the BoE this winter should provide buyers, particularly financial buyers, with more opportunities to pursue M&A activity. We are also likely to see a flurry of short term deal activity ahead of the Government’s budget announcement at the end of October, as business owners are concerned about a potential increase in capital gains tax.

“What remains unclear is whether any increase will take effect immediately or in the new tax year, April 2025. If it’s the latter, we could see a rush to market over the coming months as business owners seek to accelerate their exit plans to benefit from current rates. However, in the longer term, deal activity could decline due to less favourable selling conditions and the higher premiums required to close deals under the increased tax rates.”