BCMS-led transactions for 2020/21

BCMS CEO Jonathan Dunn writes: The past 12 months have been the most challenging on record, as the pandemic has not just impacted heavily on the way we all do business, but the way we live our lives.

However, the M&A world has not just gone on pause, and it is certainly true that some sectors have thrived during 2020/21, with demand for some of our clients’ products and services increasing significantly. I can confirm that we have some landmark transactions currently at the late negotiation stages, in sectors including cutting-edge manufacturing, online technology and professional services, which we hope to announce shortly.

As for completed transactions, there has been a notable tech focus to our deals over the past 12 months, including SaaS software provider DPS Software, which sold to The Access Group, and Catalyst Computer Systems, which was acquired by a Canadian-listed organisation, Constellation Software’s Perseus Group. We advised specialist IT Managed Services business Yellowbus on its partnership with Avoira, and completed high-profile deals in the professional services space. These include the sale of Osprey Consulting to AIM-listed TP Group, and advising the UK’s fastest-growing employment outsourcing specialist Renovo on its acquisition by business process services company Liberata.

In short: transactions are still happening, and great businesses are still highly desirable, but there are obvious challenges to getting the best outcomes in the current climate. We are talking to clients – and prospective clients – on a daily basis, and many are asking us how the pandemic is affecting buyers and investors, and their appetite to invest. Our answer is clear: the key to successful deal-making over the coming period will be about making the ‘business case to buy’ – demonstrating performance, business resilience and generating confidence in your future prospects amongst buyers.

And for that, preparing extensively for the M&A process is now more important than ever.