Predictions of record year for regional mid-market M&A deals

Overall market softening heightened transactional volume of M&As
Predictions of record year for regional mid-market M&A deals
George Traub, Managing Partner at Lumina

The overall softening of the market has heightened the overall transactional volume of mergers and acquisitions, as cash-rich conglomerates procure tech-based companies at rebased prices, said a new report released by corporate finance advisory firm Lumina.

“Although the LPCI analyses private transactions across all sectors, we predict a record year moving forward for mid-market deal activity across our key regions. We have seen many regional Sovereign Wealth Funds capitalize on outward opportunities into the UK and Europe,” said George Traub, Managing Partner at Lumina.

Lumina Private Company Index (LPCI) Q2 2022 reflects a significant repricing of deal valuations and cross-border opportunities.

New sectors such as the meta-space are expected to emerge in the months ahead even as Sovereign Wealth Funds are seeking to capitalize on outbound opportunities into UK and Europe.

The emergence of secondary VC (venture capital) funds in the region is also a trend to watch said Lumina, the leading corporate finance advisory firm connecting capital and transactions across the Middle East and the UK, which has published its latest quarterly report. The first private company M&A index covering the GCC, the Index tracks private company M&A transaction multiples across a broad range of sectors in the GCC, together with publicly available information in the market.

Within this context, Lumina has noted how future-focused sub-sectors such as FinTech, Ed-Tech, and Med-Tech are performing the strongest.

According to the report, the high oil price, the strong dollar, and the rising cost of capital in the UK have led to robust investment commitments by the UAE and Saudi Arabia to the UK and Europe, driven largely by Biotech, Clean Energy development, and sustainable infrastructure sectors.

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