By Phil Ballantyne, Cavu
The North East is poised to build on a strong 2024, where the Autumn Budget triggered a late surge in deals as shareholders looked to get ahead of longanticipated capital gains tax increase.
With several marquee transactions lined up for 2025, we anticipate a more stable, but still very active market in 2025.
Last year saw a high volume of midmarket deals in the region, including the sale of multiple businesses by regional private equity firms, such as LDC’s sale of iamproperty, and the sale of BGF-backed Datum360 to international software giant Autodesk. Additionally, listed companies continued their expansion through bolt-on acquisitions as part of their M&A strategies, with notable transactions including SkinBioTherapeutics PLC’s acquisition of Dermatonics and Bio-Tech Solutions.
As 2025 begins, there is a sense of optimism around the deal community that this year will continue to build on 2024. There are a number of sectors that continue to drive M&A activity including technology and software businesses, digital transformation consultancies, healthcare service business and critical business services. These deals are poised to launch and have already attracted strong interest from bidders.
On a broader scale, the impact of global political developments on the UK M&A market remains uncertain. The return of a former U.S. President for a second term, who has expressed intent to cut taxes while aggressively advocating for tariffs on international trade partners, could introduce new dynamics for dealmaking in the months ahead. Additionally, a stronger U.S. dollar against the GBP may further drive interest from U.S. based buyers.
Overall, 2025 is shaping up to be another strong year for M&A activity in the North East, driven by a healthy pipeline of midmarket transactions and continued interest from private equity funds.
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