12 February 2025
In a recent interview with Insider, Translink Corporate Finance UK Partner Hamish Morrison discussed the immense opportunity that businesses have with cross-border M&A transactions.
Hamish shares his insights:
We have seen this increase considerably within Translink over the last few years. The latest M&A report from Experion shows that M&A value was up 49% in 2024, and overseas bidders have dominated this landscape.*
The report also reveals that the technology, media and telecoms sector has been the UK’s leading source of M&A activity (based on YTD data in 2024 when the report was released), accounting for around a quarter of total deal volume and close to 30% of aggregate deal value.
Within the Translink team, we have recently released our own Megatrends Report to help business owners understand what trends we are seeing globally and how businesses can best prepare when succession planning.
What region is seeing a surge in deals right now?
We have seen a rise in activity across the Nordic region, particularly in Sweden. However, there has also been a lot of interest in UK companies from across the pond, with the US cross-border transactions increasing over this last year. Whilst political uncertainty means this may change the early signs are that things are continuing the same for now,
We anticipate that dealmaking will increase between UK businesses and companies in Europe, driven by Brexit and businesses having to establish a presence in European countries.
Which sectors will see the most cross-border deals?
We have found that activity in technology, healthcare, renewables, and consumables has increased. However, in the mid-market, we expect strong activity in the industrials sector.
How does the deal process vary around the world?
We have found that different countries have different approaches when completing a deal. For example, a German buyer will usually involve a far wider number of people in the deal process, and they would start integration planning in advance of completion. Meanwhile, the initial deal contact with UK businesses may involve only the directors on either side.
Why should you look further afield when you look to sell your business?
A lot of global activity is happening in the tech sector, driven by a combination of buy-and-build from private equity and people investing in tech assets.
We have seen that around 70 per cent of the processes that we currently run have an international angle.
Business owners invest a lot of their time and effort into their businesses; they want to ensure that they get the highest price for their business, which means that it needs to be attractive to people worldwide.
As the focus for M&A becomes more niche, and people are clearer on what they want or don’t want to buy, there will be a far smaller population of potential buyers, so if you restrict yourself to the UK, there may not be a strategic buyer in that market.
How can Translink help?
Translink Corporate Finance UK has a successful track record of completing domestic and international cross-border M&A transactions across various sectors. We work in collaboration with more than 400 Translink Corporate Finance colleagues around the world.
If you would like to discuss how Translink Corporate Finance can help you with your M&A strategy and explore potential international opportunities, contact a member of the team.
* Experian marketiq: YTD 2024 report
