Although the aftermath of the Brexit lurks over UK SMEs, willingness from investors hasn’t faded, in fact, the first 6 months of 2016 were exactly the same as 2015 before the shadow of the EU Referendum became apparent.
40 transactions with an aggregate business value of £1.63 billion completed which matches the first 6 months of 2015 according to the Lyceum Capital and Cass Business School UK Growth Buyout Dashboard.
During the second quarter of 2016, volume and attraction increased after a significantly sluggish three months to start the year. After April, 23 of the 40 transactions completed. Since UK voted to leave the EU a further 10 transactions have finished.
Partner at Lyceum Capital, Andrew Aylwin comments;
“During this period of uncertainty, I am most encouraged by the data and conclusions that our research has found. Volumes in H2 are likely to be lower than initially expected as investors assess targets’ prospects in this ‘new normal.’
However, the UK lower mid-market is set to shine again as a beacon of attractive investment opportunities, with the deepest pool of entrepreneurs and the strongest tech and digital economy hub in Europe.”
Director of the M&A Research Centre at Cass Business School, Scott Moeller responded;
“While it is still too early to predict the extent to which Brexit will affect the lower mid-market in the UK, we believe this portion of industry is well placed to benefit from the new environment.”