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An insightful piece from Iain Fenn and Matthew Hearn in IFLR today exploring public M&A trends which could dictate activity in 2024. Public M&A activity in 2024 is expected to see an uptick despite some challenging headwinds, with significant amounts of capital available from financial sponsors and sovereign wealth, an increased desire from companies to focus on core businesses and dispose of non-core assets and bidders continuing to take advantage of depressed UK equity prices.

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Good write up on this evolving situation Key point to see is that there is a meaningful cash infusion to the brokerage business https://lnkd.in/ejkhk_Fw

MINORITY / MARKETABILITY DISCOUNTS ARE REAL!!!! Mignone & Barton [2024] FedCFamC2F 344: By agreement, the parties obtained a joint business valuation of P Business. The valuer Mr XX of YY Pty Ltd valued the business in its entirety at $437,000, which means he valued the Wife’s 50% share at $218,500. [293] Ahhhhh.... no it doesn't! Minority and/or marketability discounts may apply to a 50% interest, so to assume that a 50% interest is equal to the pro-rata of 100% is misguided. This is explored in Rowland & Rowland [2024] FedCFamC2F 7 whereby the Parties held a 36.5% interest in a company [link to judgment in comments below]. Article on this topic to follow.......

Wealth Solutions Report was kind enough to allow me to opine on considerations sellers should take heading into the end of the year. Election years always arouse fears of a change to capital gains rates and push sellers to contemplate expediting a deal to close before year end. But is that a good idea? In case you can't guess my response, you can read the full article below: https://lnkd.in/geMfp_T4 #turkeyhillmanagement #mergersandacquisitions #wealthmanagement #sellyourRIA #capitalgains

Exciting news! 🌟 The UK is on the brink of approving the most significant transformation of its listing regime in four decades, as reported by the Financial Times. This is a game-changing update that will reshape the landscape for businesses seeking to go public. It's a move that aims to bolster the UK's competitiveness and attractiveness as a listing destination. Stay tuned for more updates as this development unfolds. #UKListingRegime #FinancialTimes #BusinessUpdates https://ift.tt/IWp8wnb

Chancellor Jeremy Hunt is reportedly considering launching a system for UK private firms to have their shares traded on exchanges before the end of this year as the Treasury looks to strengthen the country’s capital markets. The Financial Times reported that Hunt was expected to lay out the plans in Wednesday’s Spring Budget, with the Treasury aiming to start a regulatory consultation on the same day. Under the Private Intermittent Securities and Capital Exchange System (Pisces), investors would be able to partly sell down their stake in private firms on a limited number of days per year, an unnamed official told the paper. It comes as Hunt aims to boost capital markets activity in the UK amid a slump in public listings and big names snubbing the London Stock Exchange in favour of floating in New York. ✍️ Lars Mucklejohn Read the full story here ⬇️ https://lnkd.in/eDEBnCEB #privatecompanies #capitalmarkets #springbudget #springbudget2024 #londonstockexchange #london #newyork #jeremyhunt

💡 Telegraph Group Sale: A High-Stakes drama unfolds with Political, Financial and diplomatic Intrigue ❗ The Telegraph Group, including the Spectator and the Daily Telegraph, is undergoing a significant sale following David Barclay's death, with bids valuing the group at around £600 million. Financial challenges, including a £1.2 billion debt to Lloyd's Bank, have complicated the transaction. Potential buyers, such as RedBird IMI and Sir Paul Marshall, have expressed interest, prompting regulatory probes and concerns about political influence and national security implications. The involvement of Rupert Murdoch adds further complexity, with uncertainties surrounding RedBird's loan and Murdoch's financial standing. 💡 As advisors like Lazard and Goldman Sachs orchestrate the auction process, the sale of the Telegraph Group has become a focal point of attention in both financial and political circles. With the British government initiating probes into the proposed takeover, concerns about the potential concentration of media power and the influence of foreign entities have come to the forefront. The outcome of this high-stakes transaction will not only determine the future ownership of a renowned media institution but also shape the broader dynamics of the UK's media industry and its relationship with politics and national security. Analyst: Adam Hanlon-Jahangeer

Freeths is anticipating "recovery and growth" in #Midlands deal activity in 2024, one of the law firm's directors told Insider. "Inflation, rising interest rates, geo-political events/ issues, debt conditions and increased cost of capital have certainly impacted the M&A market," said director Mohammed Abbas. "The uncertainty and caution in the market have led to more scrutiny and longer execution time for deals. "Certain sectors such as technology, media and telecommunications have stayed resilient. However, others, in particularly consumer, have faced challenges and headwinds. "Overall, this has led to certain companies to alter their M&A ambitions and focus more on optimisation, strategic bolt-ons and cost reduction." Despite this, Freeths, which has #Midlands offices in Birmingham, #Derby, #Leicester and #Nottingham, is anticipating "recovery and growth in deal activity in the Midlands going in 2024 and beyond". "We are seeing some drivers for that already, namely (i) there are signs of stability in interest rates and inflation, (ii) financial sponsors still have ample capital to deploy for M&A activity, especially in sectors which offer growth and attractive returns, and (iii) the IPO market is expected to bounce back following a very quiet 2023. "Additionally, the uncertainty around the political landscape of the UK with a general election looming and the corresponding impact on capital gains tax may trigger an influx of assets coming on to the M&A market and driving an increase in deal activity." Mohammed Abbas also speculated about which sectors may see a spike in M&A activity during 2024. He said: "The TMT sector is expected to continue to lead deal volumes going into 2024. "We also expect to see the energy, power and resources sector seeing more activity, especially as more private equity funds focus on ESG and some have set up specific impact funds. "We at Freeths will continue doing what we do well in providing pragmatic commercial advice for stakeholders who are looking at options." British Business Bank Midlands

New Post: Editor’s Comment: Growth pains - I have some bad news for the Chancellor. The financial services sector, one of the great hopes of the government in terms of jobs and economic revival, is shrinking. At least in terms of the number of FCA-regulated firms. Indeeds thousands of regulated firms have been deauthorised in the past year. This may come as a surprise to a lot of people, particularly the government, but it isn’t necessarily bad news. The Financial Planning sector itself is continuing to show strong growth in many areas and the sector may be pausing for breath rather than shrinking permanently. The big picture among regulated firms, however, is one of decline with the number of firms down by 7% over the past year to 75,213, according to data provider Autus. Some 6,684 firms became de-authorised over the last six months and 14,715 individuals left the register. Consolidation, including M&A activity, has played a big part here, particularly in the adviser sector where barely a day goes past without another takeover or merger being announced. We may also be seeing the fallout from Covid, Brexit, the challenging economic times and a tectonic shift in the financial services sector towards bigger but fewer digital players. Without asking each firm that put away its calculators what their reasons were it’s impossible to know for sure. All we can say with certainty is that there are many fewer firms than this time last year. One factor may be the FCA itself and what might be called ‘tidying up.’ One of the FCA’s remits is now to encourage growth in the sector but it’s logical for the regulator to want those firms that are authorised to be robust and financially sound. Getting rid of the firms that cannot be bothered to pay their fees may be one factor behind the shrinkage. Other smaller firms may have been encouraged to call it a day. Over 400 small friendly societies, for example, have been deauthorised in the past year. Despite the decline in company numbers it is far from doom and gloom. The number of individuals authorised to provide investment or mortgage advice fell only slightly from 66,607 to 66,316 over the past six months and there are still 280,000 individuals on the FCA register. There are believed to be well over 1m people working in financial services although recent redundancies will have chipped away at that. Looking more closely at the Financial Planning and Wealth Management sectors there are also signs of continuing growth. Wealth manager St James’s Place broke through the 5,000 adviser mark for the first time in the second half of 2023, according to the figures, adding 77 advisers in the six months to reach a total of 5,051. 2Plan increased regulated individuals by 146 to 593, True Potential was up 37 to 1,162, Fairstone up 62 to 396 and Best Practice was up 48 to 362. It was not all plain sailing though with Openwork cutting numbers by 94 to 2,932 and Tenet down