In Q3 2024, deal volume remained stable in the South East, showing minimal change compared to Q3 2023.
This is the latest edition of the Cripps South East M&A Barometer, a quarterly review of M&A activity involving high-growth companies in the South East. It provides an overview of how the South East compares to the rest of the UK market, where either the acquirer or the acquired company meets at least one of eight criteria indicating high-growth potential (see methodology).
In Q3 2024, deal volume remained stable in the South East, showing minimal change compared to Q3 2023 and cumulative deal activity for 2024 (January to September) has shown a 17% increase from the previous year. This stability compares favourably with many other regions in the UK (most of which saw a decline in activity from January to September) save for the North East where deal activity has increased.
It may appear surprising that the percentage increase in the North East for Q3 is significantly higher than that of the South East; however, the characteristics of the North East and South East markets are fundamentally different. The spike is partially due to the North East's historically lower deal volumes where small changes translate into larger shifts in percentages. The M&A market in the South East continues to be driven by technological innovation, healthcare and life sciences expansion, whereas the key driver in the North East stems from the manufacturing sectors under-pinned by government led initiatives.
Notably, the South East outperformed other areas in deal consistency, reflecting the region's stable and robust economic environment. It is great to see such a varied M&A market across the UK and the strength of the tech sector in the South East.
58 deals were completed in the South East, marking a 4% year-on-year increase over Q3 2023 at 56 deals. This marks a significant drop from the 88 deals in Q3 of 2022, representing a 55% decrease from its peak.
The South East and the North East regions saw year-to-date increases, with the North East achieving a 42% uptick. Most other regions experienced declines, with London, the East of England, and the North West seeing significant reductions of 13%, 31%, and 21%, respectively.
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