M&A opportunities ‘booming’, says deal data firm

The Ikley-based company says that the number of construction deals are leading the way in the business acquisition market, closely followed by the industrial sector and IT. Deal Connections says that businesses for sale coming onto the UK market this month have a combined turnover of £345.8m.

However, in value terms, the food and beverages sector is the source of the most opportunities, with potential acquisitions totalling £131.3m turnover, followed by industrial at £97.2m and automobiles and parts at £68.7m.

James Waterhouse, founder of Deal Connections, says: “The number of construction opportunities on the market accurately reflects the construction boom which is seeing activity among builders approaching a seven-year high.

“It’s also interesting to see high-value activity in other sectors which can provide low entry barriers and rapid returns.”

“The position for business investors is strong, with positive economic indicators, low interest rates and private equity firms open to supporting these kinds of deals.”

The Deal Connections Index is a barometer of business deals. It is part of the same stable of Deal Connections which was launched earlier this year to bring together business buyers and sellers. A virtual ‘business dating’ service, it provides a comprehensive view of businesses for sale. According to the firm, the online service provides instant visibility of 85 per cent of the UK businesses for sale market.

Using data from more than 7,000 live business deals on the table at any one time, the Deal Connections Index reflects activity in the mergers and acquisitions and management buy-in marketplace.

Mr Waterhouse has a 25-year career in corporate deals and investments, ranging from SME acquisitions to multi-million pound listed company takeovers. He decided to launch Deal Connections after finding that business investors were struggling to get an overview of the business for sale market.