The Strength of the M&A Market

ROBUST. RESILIENT. PROGRESSIVE.

THE ENDURING STRENGTH OF THE M&A MARKET

2023

A ROBUST UK M&A MARKET

The table below demonstrates a robust UK M&A market, which shows consistently strong levels of performance year on-year.

Despite a number of challenging economic conditions in recent years, the UK M&A market continues to demonstrate robust levels of activity.

3,500

Average: 3,000 p/a

3,000

2,500

2,000

1,500

M&A deals

1,000

500

0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

RESILIENT DESPITE ECONOMIC UNCERTAINTY

187% INCREASE IN KBS TRANSACTIONS BETWEEN 2018 AND 2022

134% INCREASE IN KBS DEAL VALUES BETWEEN 2018 AND 2022

OVER 103,000 GLOBAL TRANSACTIONS COMPLETED IN 2022

A PROGRESSIVE ADVISER THAT DELIVERS

341

332

350

300

IN 2022, OUR GROUP COMPLETED OVER 340 TRANSACTIONS 91% MORE THAN ANY OTHER UK ADVISER Source: Refinitiv

250

200

189

200

119

150

100

50

0

2018

2019

2020

2021

2022

TRADE BUYERS REMAIN ACTIVE

Trade buyers remain active across major sectors, and are looking to drive growth and expansion through acquisition, even during difficult economic conditions.

This activity means that acquirers are paying high multiples, and with a proactive buyer sourcing strategy creating competitive tension, KBS Corporate clients are seeing higher multiples and transaction values.

OUR BUYERS

Below are just a few examples of where trade buyers, introduced by KBS Corporate, have been prepared to pay above the average industry multiple.

Sector: Lab Testing Company acquired: Reschem Analytical Multiple - 9x

Sector: IT Consultancy Company acquired: Instinctive Business Intelligence Multiple - 13x

Sector: Utilities Infrastructure Company acquired: Infrastructure Gateway Multiple - 8x

Sector: Testing & Compliance Company acquired: Zeta Analytical Multiple - 9x

Sector: Insurance Company acquired: Ravenhall Risk Solutions Multiple - 8.5x

Sector: Plastics & Chemicals Companies acquired: Aurora Manufacturing & Venture Polymers Multiple - 7x

Sector: Manufacturing Company acquired: Kestrel International Circuits Multiple - 8.5x

Sector: Recruitment Company acquired:

Sector: Food & Beverage Companies acquired: Delf UK & Abbot Analytical Multiple - 7.5x

Sector: Engineering Company acquired: EIB Group Multiple - 7x

Jenrick Group Multiple - 8.5x

PRIVATE EQUITY ‘DRY POWDER’ AT HISTORIC HIGHS

PE HOUSES AND INVESTORS WE HAVE WORKED WITH

Global private equity “dry powder”, or cash uninvested, reached historic highs of almost $1.9 trillion in 2022, up by 17% in just 2 years. A key characteristic of PE funds is their ability to respond quickly to changing trends, and the market is well-placed to steer its way through external challenges and continue to invest in growth sectors.

The UK private equity market has remained particularly buoyant, with data from business intelligence experts, Bureau van Dijk, demonstrating that over 9,500 deals involving UK targets have taken place over the past 5 years. These deals have been worth in excess of £507bn, accounting for over a fifth of all UK deals by both volume and value.

UNINVESTED CASH AVAILABLE GLOBALLY

1,882

2,000

1,602

1,500

1,000

773

674

Global financial sponsor cash uninvested ($Bn)

500

0

Sources: Pitchbook, Preqin, 2022

2010

2015

2020

2022

LISTED COMPANIES SPENDING CASH RESERVES

ACQUISITIONS OF UK COMPANIES BY PLCs

32% INCREASE IN UK ACQUISITIONS BY LISTED COMPANIES 2014-2022

Number of acquisitions

Publically listed companies in the UK are sitting on cash reserves of over £1.3 trillion. Between 2014 and 2022, the number of acquisitions of UK companies by listed buyers grew by 32% as PLCs look for growth through consolidation in a challenging environment.

500

600

700

800

900

1,000

962

2022

708

2020

761

2018

787

2016

731

2014

Source Zephyr, BvD

UK PLCs ARE SITTING ON A RECORD

£1.3 TRILLION IN CASH RESERVES

WHO HAVE WE WORKED WITH?

Listed on the London Stock Exchange Company acquired: Watermark Technologies

Listed on the New York Stock Exchange Company acquired: Cablescan

Listed on the Stockholm Stock Exchange Company acquired: Allied Insulators

Listed on the Paris Stock Exchange Company acquired: Kigtek

Listed on the Johannesburg Stock Exchange Company acquired: Fuel Proof

AN ADVISER THAT CONSISTENTLY DELIVERS

The stats below demonstrate a record year of performance for KBS Corporate and point to a positive future outlook.

REFINITIVMID-MARKET GLOBAL M&A FINANCIAL ADVISORY REVIEW 2022

Deals

K3 Capital Group

341

Grant Thornton

179

PwC

121

2,366 BUYER MEETINGS ARRANGED IN 2022

689 OFFERS SECURED FOR OUR CLIENTS IN 2022

91% MORE DEALS THAN ANY OTHER ADVISER IN 2022

Rothschild

115

KPMG

96

Houlihan Lokey

78

Ernst & Young

72

BDO

63

Deloitte

62

Benchmark

57

NO.1 UK BUSINESS SALES ADVISER

OF TRANSACTIONS CLOSE TO COMPLETION RECORD PIPELINE

23,677 ENQUIRIES FOR OUR CLIENTS RECEIVED IN 2022

KBS House 5 Springfield Court Summerfield Road Bolton Greater Manchester BL3 2NT

T: 01204 291 590 E: enquiries@kbscorporate.com

www.kbscorporate.com