Despite a general decline in deal activity across the UK in the first half of 2024, the South East region has seen a 24% increase in deal volume involving high-growth companies*, according to a recent report by Cripps.
Cripps’ third edition of the South East M&A Barometer examined M&A trends impacting high-growth businesses** in the South East of England. The data revealed that the South East experienced a rise in deal volumes compared to the previous year, making it the most active region outside of London.
Technology played a significant role in the South East’s M&A landscape, with over 85% of deals involving technology-related businesses. This suggests the South East may be emerging as a viable alternative to London for technology companies.
Notably, application software led the sector with the highest number of acquisitions in 2024, accounting for 25.2% of all technology deals. This was followed by technology consultancy and IT and telecommunications support, which surged to 17.5% from 6.7% in 2023.
US investors remain the most active overseas investors in high-growth companies, with deal volumes generally twice those of investors from Germany, France, and Denmark.
Salim Somjee, Corporate Partner at Cripps, commented: “Despite the broader challenges facing the UK market in early 2024, it is encouraging to see the South East showing resilience and growth in M&A activity, particularly in technology. At Cripps, we are dedicated to supporting South East businesses with expert guidance on expansion, including debt, equity finance, M&A, and international growth. We also assist international acquirers in navigating deal structuring and execution.
“As the world grapples with geopolitical uncertainties, including conflicts and elections, it will be crucial to see how businesses adapt. While the South East’s M&A activity, especially in technology, is on the rise, the next 12 months will reveal whether this momentum can be sustained.”
