and Beverage Sector M&A report also shows that deal value has increased by 49.1 per cent to around £400 million, compared to the same period last year.
Though activity has risen generally, the report notes that there is still a significant absence of middle to higher market deals.Did you know with a Digital subscription to Yorkshire Post, you can get access to all of our premium content, as well as benefiting from fewer ads, loyalty rewards and much more.Over 75.0 per cent of deals had an estimated value of £10.0 million or less, similar to the first third 2023, when around. 80.0 per cent of deals had an estimated value of £10.
Only 8.1 per cent of transactions were estimated to be above the £50.0 million mark, falling well below the five-year historic average of 13.9 per cent. Mark Lynch, partner at Oghma Partners, said: “The resilient and defensive characteristics of the food and beverage M&A sector can once again be seen with deal volume in the second part of the year at its highest level since 2019 despite the relentless market challenges.
“Whilst there has been a recovery in deal value, this has been from a very low base and the overall quantum value of transactions remains low. A challenging funding and trading environment with the added uncertainty of whether, or not, the UK will dip into recession provides the economic backdrop. These factors have manufactured a significantly less favourable environment for larger transactions.