Insight: Kingsbrook’s recent deals – popular sectors and what drives sale value

Published in Insights by Emma Curtis on 11 September 2023

Kingsbrook’s recent deals highlight the skills and attributes that drive sale value

Kingsbrook is delighted to have completed a number of deals recently, across a range of sectors. Four of them were in the IT/SaaS, healthcare software and freight forwarding sectors. These are proving to be well-performing sectors this year, and each project received high levels of interest: we had multiple meetings and offers for each of our clients. Here’s why these companies were so popular:

– Our Healthcare software client had a unique software solution that improved sales, created valuable insights into its sector and drove efficiencies. The buyer served a similar client base, and saw the opportunity to grow through a specialist bolt-on that they could cross-sell to their current clients.

– One IT/SaaS client worked in the lucrative education sector, offering its buyer a ready-made client base in a sector it was eager to enter.

– Our second IT client worked in aviation developing advanced software, and offered the US buyer a ready-made entry into the European market.

– Our freight forwarding client represented a classic example of a large, multi-service company investing in a specialist company to expand that part of their offering using the most effective and fast way possible.

What was the one thing all our clients had in common?

Although these clients were from very different sectors and had very different skills, they all had one thing in common – their skills were attractive to others. This was either specialist experience or knowledge, or an unusual product that offered value to a number of buyers.

The best way to drive value when selling your company is to find out the pain points that affect your sector, and what your company can do to solve these. Offering companies a solution to their problems, or showing them how the acquisition of your company can increase profits, or open up a new client base will drive up the value of your business.

These sectors are also showing high levels of M&A across the wider market

The M&A market is currently still buoyant across most sectors, with these three in particular showing high levels of engagement.

According to PWC, in the IT sector the need to innovate, reconfigure and transform through innovation and digitalisation is more important than ever, and software sales are continuing to attract investor interest, not least due to its recurring revenues.

The healthcare sector is also showing growth in 2023, and Grant Thornton has noticed an increase in deal activity across medical devices, medical technology, and pharma services. Both private equity and commercial firms are continuing to invest, showing that UK private healthcare is a strong place for investment.

And in logistics, BDO has found in its annual Logistics Confidence Index, that 45% of logistics firms are planning to make acquisitions over the coming year. Buyers are looking to expand services and geography, increase tech uptake and increase scale.

 

 

If you are thinking of selling your business and would like to explore your options with Kingsbrook, please get in touch, either by email at [email protected] or call us at 01635 736741.

Published on 11 September 2023 by

Emma Curtis

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