Strong Dollar Whets Appetite for M&A

NEWS
Morphose Capital Partnersfacilities managementprivate equity
By Morphose•14 January 2025
Strong Dollar Whets Appetite for M&A

The UK economy may be facing some challenges, but for SME owners considering an exit, it's a good time to look to the US. US buyers are actively seeking acquisitions in the UK, attracted by a weak pound and improving US economic conditions—such as strong job data and a robust dollar—which combine to make UK companies particularly appealing.

At Morphose, we have deep, long-standing relationships with key investors across the Atlantic, and over the past 24 months, US buyers have accounted for a significant portion of our deals. In fact, 35% of the acquisitions we've managed were made by US firms, representing 60% of the total deal value. We handle the full advisory process, finding the right fit buyer for SME owners, negotiating and advising on terms, and smoothing out bumps and troubles that might arise during the due diligence process in order to achieve a successful exit.

US private equity firms have shown particular interest in high-growth sectors like technology, life sciences, and pharmaceuticals, which are seen as important for the acquisition of new technologies and long-term portfolio growth. However, it's not just these sectors that are in demand, other overlooked sectors offering growth potential such as facilities management that show strong recurring revenues and potential for modernisation and innovation are drawing strong interest.

So, if you’re a UK SME owner hoping to exit, it might be time to look across the Atlantic, where buyers are actively seeking UK businesses as part of a strategy to diversify and grow. This could turn what might feel like a "sour" market at home into a sweet result. If you need help in finding a potential buyer, please talk to us to see how we can assist you.

Recent Articles

No recent articles found.

Morphose Capital Partners Team

About Morphose Capital Partners

Morphose Capital Partners is a leading advisory firm specializing in mergers & acquisitions, corporate finance, and strategic transactions for owner-managed businesses across the UK.

With decades of combined experience, our team provides expert guidance through every stage of your business journey – from early-stage funding and growth capital to strategic exits and business sales.

We pride ourselves on building long-term relationships with our clients, offering personalized service and deep sector expertise to help you achieve your business objectives while maximizing value at every opportunity.