Member Article

Increase in the value of UK M&As;

The value of UK mergers, acquisitions, flotations, rights issues and placements increased by 11% in 2011, according the research by Experian Corpfin.

While the overall volume remained fairly constant, dropping by only 2%, total value of activity was £229 billion for 2011, representing an 11% increase on 2010.

The value of UK Large transactions, those exceeding £100m in value, where a consideration was disclosed was up by 13% to £201 billion in 2011, with the volume of transactions (300) identical year-on-year.

BDO International was identified as the most active financial advisor by volume, with 83 deals; Citigroup topped the value league with deals worth £48 billion; and the leading legal advisors were revealed as DLA Piper, at 126 transactions, and Sullivan & Cromwell LLP, with a £43 billion total deal value from 13 transactions.

During 2011 45% of all European transactions involved a UK firm. The total value of European transactions in 2011 was £618 billion, a decrease of 8% on the 2010 values.

Wendy Smith, Business Development Manager at Experian Corpfin, said: “A 20% increase in the volume of private equity backed buy-outs means that UK M&A deal activity has remained relatively robust in 2011, with a notable increase in the total value of deals, especially at the large end, against stable volumes.

“There still appear to be good opportunities for investment and growth across the country.”

The value of deals announced in the North East rose from £3,092m in 2010, to £7,956m in 2011, while one of the biggest increases was seen in East Anglia, as the value rose from £2,274m to £11,500m.

The top country dealing with the UK in 2011 was the USA, representing 13.44% of deals.

This was posted in Bdaily's Members' News section by Tom Keighley .