Understanding Today's M&A Market (UB)

UNDERSTANDING TODAY’S M&A MARKET

The M&A market of today includes significant participation from corporate buyers, PE portfolio add-ons, financial investors, special purpose acquisition companies and venture capital; the latter three grew twice as fast last year. Staying ahead in a complex market is key to making your business a more attractive acquisition or investment opportunity. 2022 saw enterprise values increase for our clients, making now an opportune time for shareholders to evaluate their own value and stay ahead of the rapidly changing market by focusing on some key actions. UNDERSTANDING TODAY’S M&A MARKET

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The M&A market is generally more robust than other segments of the economy; when the impact of the COVID-19 pandemic first hit, the M&A market was predicted to experience an unprecedented downturn. This simply did not happen; the data showed that the market stabilised quickly and by 2021, had generously surpassed pre-pandemic levels. Adding to this; over 96,000 global transactions closed within 2022 alone, despite global economic uncertainty brought on by inflation, conflict, unpredictable stock markets, and government instability. Due to the robust nature of the market, it is widely agreed upon that mergers and acquisitions will play an increasingly vital role in corporate growth strategies as companies and investors look to accelerate growth and stay ahead of the curve amidst this precarious global climate. This strength is demonstrated across multiple sectors that we, at KBS Corporate, have seen perform particularly well and have experienced high levels of interest and completions. Last year was a record year for our Group, with over 340 transactions completed in the first nine months and OVER 96,000 TRANSACTIONS CLOSED GLOBALLY IN 2022

a further 200 deals currently in the legal process. Additionally, over 18,500 buyer NDAs were returned demonstrating an abundance of interest and appetite, most of which are still not on the acquisition trail and looking for further opportunities. Private Equity firms are sitting on significant levels of available funding and looking for a way to invest. WE HAVE GENERATED THOUSANDS OF EXPRESSIONS OF INTEREST FOR OUR CLIENTS The importance of working with experienced advisors when considering the sale of your company is paramount. For almost 25 years, KBS Corporate has been guiding UK business owners through their company sale journeys, and in that time we have established ourselves as one of the most trusted and prolific advisers. Whilst there is no denying that the state of economic affairs will undoubtedly play a role in the short-term future of the M&A marketplace, do not rule out the already proven resilience of the market and that, with the correct support and advice in place, higher than ever levels of interest and deal values are being achieved.

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THE M&A MARKET IN 2023 The M&A market in 2022 was particularly buoyant against the current macroeconomic backdrop, demonstrating consistency with healthy, pre-pandemic levels. At KBS Corporate, we are seeing high levels of dealmaking and even greater average values being achieved for our clients. Globally, over 103,800 M&A transactions closed in 2022, and due to the robust nature of the market, we believe that mergers and acquisitions will play an increasingly vital role in corporate growth strategies for the foreseeable future. Both in the UK and beyond, companies and investors are looking to accelerate growth and stay ahead of the curve amidst this precarious global climate.

SIGNIFICANT DEALS HANDLED BY KBS IN RECENT WEEKS

RAVENHALL RISK SOLUTIONS

ROOMS & VIEWS MANUFACTURING

STORETECH SOLUTIONS

CLOUD/DIGITAL DATA STORAGE BUYER: BRIDGES FUND MANAGEMENT (UK INVESTMENT)

INSURANCE BROKERAGE

MANUFACTURING

BUYER: JENSTEN GROUP (TRADE, BACKED BY LIVINGBRIDGE)

BUYER: FORESIGHT (UK PRIVATE EQUITY)

VIVUP

BIL GROUP

CLIMB ONLINE

EMPLOYEE BENEFITS

MANUFACTURING

DIGITAL MARKETING

BUYER: OMNI PARTNERS (UK INVESTMENT)

BUYER: PHD INDUSTRIAL HOLDINGS (UK INVESTMENT)

BUYER: xDNA GROUP (UK TRADE)

FIX ‘N’ FIT

WHARNCLIFFE

WATERMARK

DOCUMENT MANAGEMENT SOFTWARE BUYER: GRAFENIA PLC

HEAVY PLANT TYRES

IT

BUYER: LITERACY CAPITAL PLC

BUYER: INNOV9 TECHNOLOGY

MOST ACTIVE SECTORS

We have strong relationships with some of the most active acquirers, investors and consolidators within the UK and overseas. At present, our clients are seeing higher average deal values and deal multiples than ever before.

TECHNOLOGY, MEDIA & TELECOMS

606 DEALS

606 UK TECHNOLOGY, MEDIA & TELECOMS TRANSACTIONS HAVE TAKEN PLACE IN THE PAST YEAR

£ 2.7 BN

UK TRANSACTIONS WITHIN THE SECTOR TOTALLED OVER £2.7BN IN THE PAST YEAR

MANUFACTURING

520 DEALS

520 UK MANUFACTURING TRANSACTIONS HAVE TAKEN PLACE IN THE PAST YEAR

£ 5.2 BN

UK TRANSACTIONS WITHIN THE SECTOR TOTALLED OVER £5.2BN IN THE PAST YEAR

INSURANCE

96 DEALS

96 UK INSURANCE TRANSACTIONS HAVE TAKEN PLACE IN THE PAST YEAR

£ 1.1 BN

UK TRANSACTIONS WITHIN THE SECTOR TOTALLED OVER £1.1BN IN THE PAST YEAR

OUR APPROACH

INTRODUCTION TO YOUR TAILORED SALE STRATEGY

Our approach is designed with the purpose of delivering maximum value and fulfilling the exit objectives, timescales and preferred deal structure for the shareholders of your company. The targeting methods utilised by KBS Corporate to find your perfect buyer are extremely extensive and our presentational documentation is second to none, enabling us to deliver multiple prospects for this opportunity. This is where the ‘offer’ and ‘acceptance’ process starts to take shape. We will maintain close control over this ‘bidding stage’ and ensure that a position of strength is preserved throughout our negotiations, in order to drive value and leverage offers to their optimum level. The process is designed to be tailored and flexible, allowing us to revisit and adapt various stages as we facilitate multiple offers and create ‘competitive tension’. This allows you the opportunity to choose your preferred exit, in terms of acquirer ‘fit’ and deal structure. Once you have engaged with the services of KBS Corporate, our experienced team would continue to work closely with you to ensure all stages of the sale are handled with the professionalism that the sale deserves and would provide the important personal touch so that you remain informed of progress at all times.

UNDERSTAND Once you have taken the important decision to mandate KBS Corporate, our primary aim is to fully understand your objectives and what you, as shareholders, want to achieve. We then need to comprehend every aspect of the company in great detail from an operational, managerial, financial and strategic perspective. Only by doing this can we ensure that our bespoke service is specifically tailored to your company and your requirements.

PRESENT We will produce a number of ‘best in class’ presentational documents in order to illustrate the key aspects of the opportunity. Our designated document writers and marketing professionals will work closely with you to produce a bespoke Information Memorandum (IM) and a confidential Opportunity Summary, ensuring they are of the highest quality.

REACH Our objective is to provide the most comprehensive ‘Buyer Reach’ within our industry. With a combination of superior marketing techniques, investment into business intelligence systems and expert buyer identification practices utilising ‘big data’, we will explore every possible avenue in our search for your perfect buyers.

DELIVER KBS Corporate drives forward the process to ensure momentum is maintained, this is done by lifting much of the workload from you, allowing you to run your business and deliver the expected performance. We understand the due diligence process and have the knowledge and experience to ensure that the legal process is handled with the care and attention that it deserves.

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

T: 01204 291 591 E: enquiries@kbscorporate.com

www.kbscorporate.com