Accounting Firms

M&A deals soar in Q1

According to research carried out by BDO, private equity confidence is at a 13-year high after 776 M&A transactions were completed in the first quarter of 2021

The first quarter of 2021 saw a dramatic rise in private equity confidence following a surge in M&A deals.

Private equity confidence is currently at a 13-year high after 776 M&A transactions were completed over the period, according to BDO’s PCPI / PEPI quarterly report.

The represents an 8.2% increase on Q4 2020 activity levels -and shows the market is continuing to catch-up on deals following last year’s lockdown.

Roger Buckley, M&A partner at BDO, said: “We saw an astonishing quantity of deals completing in the first quarter of this year, which was driven by a number of factors including catch-up activity, the potential rise in CGT, and a considerable step-up in private equity investment.

“Private equity raised £55.3bn in the UK in 2020, up from £52bn the previous year. Having increased its share to 21% of all deals completed in Q1 (up from 17% in Q4), we should expect to see this foothold maintained.”

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He added: “While we continue to live in uncertain times, Q1’s performance doesn’t feel like a blip. Overall, we anticipate a strong 2021-22, with deal activity levels continuing to stay strong.”

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