Sector Insights

Our sector insights offer a closer look into a variety of industries and markets. Written by our experienced leadership team, the content is set against a backdrop of influential factors including political shifts, economic uncertainty and COVID-19, all within the context of M&A deal activity. We are continuously adding new insights and updating our existing ones.

Key insights into the UK Managed IT Service Providers sector, including the current market conditions, projections, valuations and existing latent market opportunities.

With a blend of market factors, M&A has remained remarkably resilient in the sector and bank funding has remained supportive. As expected, Q2/Q3 FY20 market activity has been lower as MSPs focused on customer projects with the backdrop of Covid-19.

As trading variability becomes much clearer in Q4 FY20, especially in relation to small and mid-market MSP businesses, we predict that M&A activity in the sector will see a marked upturn. We are also seeing that most buyers are happy to use Covid-19 lockdown ‘excepted’ valuation models.

 

Key insights into the Utilities, Infrastructure Services & Consulting sectors, including recent deal activity, the possible impact of the ‘Build’ deal and what the future looks like for M&A investment strategies worldwide.

Whilst the government has the challenge of concluding the on-going investment into a range of critical sectors, as highlighted below, it is clear that they will continue to focus on key national and regional infrastructure projects that are required to drive economic growth and unlock private investment.

Not only have we seen increased investment from both the public and private sectors who are focusing on long-term returns, but we are also seeing a strong strategic move by large corporates to make SME acquisitions in the infrastructure and utilities sector. So, with increased M&A activity, could this be the time to consider selling your business or seeking investment for business growth?