The corporate finance team at accountancy and business advisory firm BDO UK has had another record year of deals, completing 428 transactions in 2018 with a combined value of more than £21.8bn.
Deal volumes for BDO have grown over 40% from 300 in 2017 to 428 in 2018, while deal value increased to £21.8bn in 2018 - an 18% increase on the £18.5bn total last year and a 13-year high for the firm.
Transactions involving private equity nearly doubled in the last 12 months, from 120 deals (2017) to 225 (2018). BDO says private equity investors will remain a firm feature of the market, with deal flow looking strong for 2019 as PE houses continue to deploy funds in the market.
BDO’s M&A team completed 81 deals totalling £5.9bn, with the highest proportion of transactions being in the leisure, technology & media and financial services sectors. Transaction services deal volume has increased nearly 50% from 220 in 2017 to 323 in 2018 making BDO the third most active accountancy firm in the UK for due diligence deals, according to the Mergermarket league table report.
Peter Hemington, Head of M&A at BDO in the UK, said: “We have had another impressive year of deals across our M&A and transaction services business. We continue to invest and grow our team here in the UK and our member firms across the globe are also looking to expand. Despite the evident political and economic uncertainty, businesses are strongly committed to completing transactions as they pursue their growth ambitions.
“No-one knows for certain if we have hit the top of the market but with a robust profile of ongoing M&A activity and significant levels of corporate and private equity capital seeking the right transaction, we are expecting a strong market in 2019.”
BDO’s international network delivered more than 1,440 transactions with an aggregated value of USD $81.4bn over the last year. This represents an increase of 20% compared with the 1,200 deals completed in 2017.
Chris Grove, Head of Transaction Services at BDO, added: “Our global footprint means we can provide clients with the expertise and market intelligence they demand, wherever in the world they are or want to be. With 30% of all UK transactions involving an international party on the other side of the deal, and with our international member firms network continuing to grow, it appears that cross border deals will be a significant theme in our 2019 activity.”
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Accountancy and business advisory firm BDO LLP provides integrated advice and solutions to help businesses navigate a changing world.
Our clients are Britain’s economic engine – ambitious, entrepreneurially-spirited and high growth businesses that fuel the economy.
We share our clients’ ambitions and their entrepreneurial mind-set. We have the right combination of global reach, integrity and expertise to help them succeed.
BDO LLP operates in 16 offices across the UK, employing 4,000 people offering tax, audit and assurance, and a range of advisory services. BDO LLP has underlying revenues of £464m and is the UK member firm of the BDO International network.
BDO’s global network
The BDO global network provides business advisory services in 162 countries, with 80,000 people working out of 1,600 offices worldwide. It has revenues of $9bn.
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