Deal makers at PKF Francis Clark advised on transactions with a combined worth of £1.3billion in 2022.
The corporate finance team advised on deals across sectors including energy & infrastructure, hospitality, tourism & leisure, financial services, healthcare, professional services, manufacturing, wholesale and technology, media & telecoms.
These included the sale of Devon-based Golden Coast Ltd, the UK’s largest independent distributor of swimming pool and spa components and accessories, to the multinational Pollet Pool Group, and the management buy-out of Rotamic Engineering Limited, the Exeter-based manufacturer of components used in aerospace, medical and scientific applications.
The deals are among those featured in the PKF Francis Clark’s 2022 Southern region Deals Review.
The report includes a survey of professional advisers and funders, which found economic uncertainty is the biggest factor currently affecting dealmaking, according to 79% of respondents.
Meanwhile, 53% of respondents expect deal activity in 2023 to be at the same level or above that seen in 2022.
PKF Francis Clark, which has nine offices across the South and South West including its new base in Southampton, is a member of the PKF International network of independent accountancy firms.
Andrew Killick, head of corporate finance at PKF Francis Clark, said: “Our analysis of data collated by Experian shows a 5% decline in deal volumes in the Southern region of the UK last year, while the national picture was broadly flat. It’s perhaps surprising that this decline wasn’t greater, given all the challenges of the past year, with decade-high interest rates, inflation exceeding 10% and the war in Ukraine. The 1,751 deals completed in the Southern region still represented the second highest level of activity in the last decade, following a record year in 2021.
“The availability of all types of funding, cash on corporate balance sheets and the volume of professionals now embedded in the transaction marketplace have supported and encouraged entrepreneurs to do deals. Most professionals had a good year in 2022, with quite a number, including ourselves, having yet another record year in overall terms.
“Valuations and multiples remained robust. However, we are seeing growing divergence between sectors, with some facing a challenging outlook, particularly those in traditional retail and consumer markets. The reality is we are now in an era where change and uncertainty are the norm, and deal pricing and structuring may increasingly be designed to take into account uncertainties.”
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