Gambit’s Software and IT Services (SITS) Market Review for Q421 witnesses historically high levels of UK SITS M&A activity despite temporary, Omicron-induced market volatility during the period.
To read the full report, click here.
Key points in focus:
With SITS companies accumulating significant cash balances and private equity firms accruing record levels of ‘dry powder’, both will seek to deploy resources into quality assets and in-demand, profitable subsectors, which will drive buoyant M&A activity in 2022.
Shareholders have benefited from a surge in valuation multiples in the rebound from the pandemic and the uplift reflects the growing recognition among investors that investment in digital transformation is required to meet the demands of the post-Covid landscape.
The current M&A environment presents a ‘window of opportunity’ for shareholders to explore succession strategies while transaction activity and heightened competitive tension can be leveraged to maximise value realisation.
Investors are increasing their focus on sustainability during the transaction due diligence phase, driving enhanced deal values for ESG-credible SITS companies, as acquirors look to leverage and embed this competency within their portfolios.
Proactive business owners should reach out to their advisory network to establish a best practice approach to maximise value creation and realisation opportunities.
