Takeover frenzy - is London Bridge falling down?

London’s reputation as a financial superpower has come under fire recently, as private equity firms have increasingly cashed in on British businesses with depressed price tags. In the last few weeks the recovery in the strength of the pound has encouraged PE firms to ‘pounce before it’s too late’ and snatch up those with low valuations. In such choppy economic waters, the need for accurate and up-to-date data is more important than ever - especially when it comes to financial analysis and due diligence.

?

Firms such as Dechra Pharmaceuticals, Wood and Network International are seeing their share price rise by as much as 33% amid takeover rumours, raising concern about the price and potency of British business. Victoria Scholar, an Interactive Investor analyst says, 'there's a sense among international investors that the UK is ripe with M&A targets.'

?

This started during COVID, where firms such as G4S, the AA and Morrisons were sold, during times of economic uncertainty, in bouts of ‘pandemic plundering’. However, the continuation of this should be concerning to the British government and the future of the London stock market, currently not holding up well against our neighbours across the Atlantic.?

?

Some, however, are fighting back. London-based events organiser Hyve backed a nearly ￡500 million takeover by a US PE firm in February. Nevertheless, top shareholders have spoken out against the deal, and if those holding the majority share of the company vote against it, then the takeover will inevitably collapse.

?

What’s next?

?

Well Russ Mould, director at AJ Bell, reminds us that ‘everything is up for sale at the right price’ and investment can happen to anyone - meaning that if the coming months hold more uncertainty, this could mean more takeovers.?

?

Data companies such as mnAi can be crucial to those looking towards M&A for their next step. With our cutting-edge data technology and insights and analytics around due diligence, connected data and fraud analytics, mnAi’s platform goes deeper.?

?

To book a free, interactive demo of mnAi’s data platform - click here?