Clearwater International’s UK team have completed a total of seven deals during October across their five offices in London, Birmingham, Nottingham, Manchester and Leeds totalling £412m in deal value.
Deals completed by the mid-market advisory firm include Inflexion’s majority investment in technology and training services provider Sparta Global, Advanced’s acquisition of workforce management company Mitrefinch, the refinancing of plan.com, SessionCam’s sale to Glassbox Digital, and Palatine’s investment in Back2Work.
Whilst deal making went on hold across the globe in the second quarter of 2020, Q3 2020 marked a rebound in M&A activity which saw an 80% increase in transactions. Vendors are encouraged by the continued appetite for M&A by both strategic buyers and PE, with valuations holding up and, in some sectors, – particularly TMT – increasing substantially. A big increase in recent new mandates has also been seen as a result of growing concerns over increases in CGT rates.
Since the beginning of 2020 Clearwater International has completed 30 transactions in the UK, a reflection of the busy period the business has experienced throughout the lockdown period. Over 50% of completed transactions crossed the line since lockdown was enforced indicating a confidence in the market amongst those sectors that have remained active.
Over half of the transactions completed since COVID-19 have involved PE both investing in new business and exiting portfolio businesses, a positive sign of the high levels of dry powder accessible to fuel quality businesses.
Clearwater completed deals across a variety of sectors, the most active sectors throughout COVID-19 have been TMT and business services, both sectors with key markets supporting the economy and the new world created as a result of COVID-19.
Phil Burns, Manging Partner at Clearwater International commented: “In the midst of a global pandemic and a fragile economic climate, we have proven again that we have the capability and commitment to support our clients to achieve excellent outcomes. The Clearwater team has shown their dedication and agility in an uncertain time, achieving some incredible results for our clients. The increase in recent new client mandates also points to this momentum carrying us through to the end of the year and into 2021.”