North East M&A review and outlook for 2025
March 15, 2025
Reflecting on 2024
Throughout 2024, we found a high quality and quantity of deals, seemingly driven by a combination of tax changes, consolidation and the expansion of emerging sectors.
One of the team’s stand out deals was advising an innovative North East software brand, operating in the iGaming sector, on its multi- million-pound sale to a Danish digital sports media group.
Copenhagen-headquartered Better Collective A/S, dual-listed on the Nasdaq Copenhagen and Nasdaq Stockholm, bought AceOdds in a €42 million deal in a bid to significantly enhance its presence across the UK.
This transaction was consistent with a trend we saw throughout the year, with increased activity in the software and technology sectors and some interesting multiples.
Another highlight was acting for the shareholders of Durham-based Indigo Software on its sale to US-headquartered Aptean Inc, a global provider of industry- specific software.
This was yet another example of the region’s impressive output in the software sector and another cross-border transaction.
We had supported Indigo Software across a number of areas, including corporate, commercial contracts, intellectual property, employment and commercial property, putting us in a great position to work efficiently and deliver the best result for shareholders.
Towards the end of the year, we acted on the sale of Wingrove Motor Group to Arnold Clark.
Wingrove is another long-standing client we had worked closely with on the commercial and private side over the last two decades.
The deals were a pleasing combination of working in fast-moving sectors, while maintaining our ethos of partnering with businesses over the long term, supporting them on their journey across a range of disciplines.
As a general trend, we saw an increase in shareholders selling to employee ownership trusts, working closely with our private client team in the process.
Employee ownership trusts can offer a long- term, commercial succession plan to certain business owners with associated tax benefits.
We find employee ownership trusts can be very effective, provided they suit the culture and outlook of the business and its shareholders.
Sector activity
As well as activity in the emerging sectors of technology and software, we saw good levels of activity in more traditional areas.
In addition to automotive, we have a strong reputation in the care home sector, and we continued to see consolidation in this area.
From a regional perspective, our commercial teams anticipate continued expansion in the hospitality and leisure sector.
2025 outlook
We have seen a strong start to 2025, with a number of ongoing deals and investments paired with a strong pipeline.
Towards April, it will be interesting to see what impact the planned CGT changes have.
The changes to Business Asset Disposal
Relief this April, and again in April 2026, may accelerate the timeline for certain transactions, though not to the same extent as the 2024 Budget.
While the deals market is always hard to predict in the context of wider economic changes, there is a lot of cause for optimism in the North East and further afield.
There is a resilience and buzz in the region across the business and professional community.
This year, we are already seeing a real appetite from business owners to seek out opportunities for growth through funders and investors, as well as those ready to extract value through trade sales and management buyouts.
Our advice to clients is to prepare for transactions of any nature as early as possible.
Business owners should seek advice and equip themselves with as much information as possible to make informed decisions and allow them to meet the challenges of transacting.
Trusted advisor
We understand the strategic objectives of our clients, acting as trusted advisors and always taking a proactive and holistic approach.
As a full service commercial firm, we are well placed to help clients on all aspects of their business and personal journey.
Hay & Kilner
For more information about Hay & Kilner and the services it provides, visit www.hay-kilner.co.uk, or call 0191 232 8345. Alternatively, contact Ben Jackson at [email protected]
March 15, 2025
- Promoted