While the majority of the UK saw a dip in deal activity in H1 2024, the South East is outperforming most of the UK with a 24% increase in deal volume involving high-growth companies in the same period, according to a new report from Cripps.
The third edition of Cripps’ South East M&A Barometer analysed M&A activity and trends that affected high-growth businesses (excluding London) in the South East of England.
Overall, deal volumes increased in H1 2024 for high-growth companies compared to the previous year, with the South East being the most active region outside of London.
Technology dominated M&A activity
report found that over 85% of deals involving high-growth companies included technology-related businesses, with the South East aligned with London on technology acquisitions.
This data points towards the South East potentially becoming an alternative destination to London for technology companies.
Significance of application software
Application software saw the most acquisitions in 2024, representing a quarter (25.2%) of total technology deals, followed by technology consultancy and IT and telecommunications support, which represented 17.5% in 2024 – a huge leap from 6.7% in 2023.
US investors continue to be the most active overseas investors
It was noted that US investors continue to be the biggest overseas investors of high-growth companies, with deal volumes typically double those of Germany, France and Denmark.
Salim Somjee, corporate partner at Cripps, said: “Despite the broader challenges faced by the UK market in the first half of 2024, it is great to see the South East has demonstrated resilience and growth in M&A activity, particularly in the technology sector.
“At Cripps, we are committed to supporting the ambitions of businesses in the South East, providing expert guidance on expansion options, whether through debt, equity finance, M&A activity, or international expansion.
“We also have deep experience in supporting international acquirers looking to benefit from the opportunities in the South East, by helping them navigate deal structuring and execution.
“As the world is still recovering from multiple geopolitical events, including conflict and elections, it will be interesting to see how businesses navigate this uncertainty, as this could define their success in the coming years.
“While we are seeing M&A activity grow in the South East, particularly for technology-related businesses, the next 12 months will show whether this momentum can be sustained.”
To access the full report, click here.
