It is true that the start-up businesses of today are likely to shape the M&A deals of tomorrow. In this blog, we take a look at the top industries for start-ups in 2016 and why investors should be keeping an eye on how these up-and-coming businesses develop.

Lack of Urgency - Now, while the parties to a merger or acquisition cannot exchange commercially sensitive information prior to being under common ownership, there is more than enough critically important, legally permissible prep work to keep an integration team occupied for a few months before day one. However, the majority of chief executives are unaware of this and wait for clearance from the regulatory authorities. Speed is essential in the M&A game.

For those who regularly engage in M&A, a large majority of them have begun to make technology-driven data analytics a crucial part of their toolbox, whether in the initial search for potential targets or other elements of the due diligence process. The term is one that is widely used for technology solutions to aid businesses interpret data as well as analyse business trends. Additionally, it provides a level of both sophistication and precision that was previously not there.

Activision recently completed its acquisition of King Digital, the company behind the highly popular mobile app Candy Crush Saga. $5.9bn was spent on an acquisition that is being deemed as a way of “accelerating Activision’s move into mobile gaming”. On paper this deal makes perfect sense, as both are highly successful and profitable. Complementary products and prowess, good income, what could go wrong?

As one of the world’s largest companies and home to what is arguably the most successful consumer electrical product of all time, Apple which has forged a name as a technology giant, comfortably sits on a cash stockpile of $233bn. So, what does a company in this position do to continue on their path to technology and media world dominance? Recent rumours have surfaced that Apple is seeking to expand their empire through the acquisition of original content, breaking specifically into the television market.

The merging of two companies can, in any instance, create a significant amount of upheaval, worry or concern for the parties involved. Successfully integrating two organisations without any teething issues is by no means a simple process and, according to professional services giant PWC, the flurry of activity surrounding a deal means that good communication is often overlooked.

This article has been produced to give the reader, some insight to developments within the mergers & acquisitions industry, as well as tips when considering funding.

The looming EU referendum has undoubtedly created much discussion and debate. While headlines have predominantly focused on two issues. Firstly, whether a Brexit would cause a dip in rates of employment and secondly, the position of influential figures and celebrities in the discussion.

Over the last few years, television has gradually lost its dominance as a source of entertainment, news and information. Viewers, and in particular the millennial generation, are now looking to digital platforms to access their favourite television shows, films, news broadcasts and sports fixtures. With this, television sets are slowly but surely becoming a thing of the past, as viewers increasingly turn to laptops, tablets and other mobile devices.

At first glance, business owners are best-placed to oversee the sale of their company. After all, they are the ones who have been at the helm since the very outset and are likely to have an encyclopedic knowledge of the business’ history, finances, employees past and present and all of the key ingredients that have gone into its success.

We often hear about the significant and market-changing deals that take place, however it is important to remember that there are those that don’t succeed. A study by the Harvard Business Review (HBR) showed that the average rate of M&A failure is at a substantial 80 percent.

When it comes to M&A, the food and beverage sector has seen some interesting activity in the first quarter of 2016. This follows a record breaking 2015 which notably saw H.J. Heinz Company merge with Kraft Foods Group in a deal which is expected to result in the company posting revenues of around $28 billion.

As M&A activity increases worldwide, unfortunately so does cyber-crime. Now whilst the two are in no way related, there is no hiding the fact that there has been a number of high profile incidents in recent times, with major companies such as eBay, Target and Yahoo! all being the victims of such crimes.

When businesses consider the possibility of a merger or acquisition, the benefits of the change are examined; improved profitability, availability of new markets and enhanced/strengthened competitive position. Now, while it is difficult to argue that these aspects of M&A can be extremely good for a company’s bottom line, the same may not be true for the business’ employees.

While there is much focus on large M&A deals, as well as a vested interest in start-up acquisitions, the middle market can at times be overlooked.

Benchmark International is pleased to announce that a deal has been agreed for the sale of Titan New Lifts Ltd to Elevator Engineering Enterprises Ltd.

2015 was recording breaking year for M&A healthcare, with over 1,400 transactions taking place and amounting to roughly £389 billion globally. We take a look at the recent surge in healthcare acquisitions and whether they are set to last.

Benchmark International is pleased to announce that a deal has been agreed between UPS Systems PLC and Data Centre Response Ltd.

Benchmark International is pleased to announce that a deal has been agreed between Spokemead Maintenance Ltd and Bilby PLC.

Benchmark International is pleased to announce that a deal has been agreed between Programmable Systems Design Ltd and Innovative Control Systems.

Benchmark International is pleased to announce the successful sale of Tricorn Systems Limited to Valuechain.com.

We at Benchmark International are pleased to announce that a deal has been agreed between Ship-Elec and KEW Ltd.

Benchmark International is pleased to announce the sale of the Osprey Management Company Limited to Reit Plc.

As a small business or start-up, the prospect of undergoing a merger or acquisition can be daunting. However, this need not be the case and it can, in fact, bring positive results to your company.

You may have seen or heard about the latest buzzword for a phenomenon currently causing ripples in the M&A world: Fintech. A contraction of ‘financial technology’, Fintech is shorthand for financially innovative companies, usually start-ups, utilising technology to help make financial services more efficient. It is a growing sector and expected to reach around £5.55 billion by 2018, with firms in Europe experiencing the highest growth. Fintech firms offer a range of financial services including loans, currency exchange and payments, as well as portfolio and wealth management.

Start-ups have increasingly become a sought-after prospect, with major global players such as Apple, Facebook and Google competing to buy their way into new markets and to ensure they have the competitive edge.

Benchmark International is pleased to have advised on an agreed deal for the sale of Melpass Limited to Vil Holdings Limited.

Benchmark International is pleased to announce the sale of Pocketbond Limited to Bachmann Europe Plc.

Q1 2016 – M&A Deals Round-up

During his Budget speech to Parliament last week, Chancellor of the Exchequer, George Osborne, unveiled a major shake-up of corporate taxes including lowering the main rate companies pay to less than half the rate levied on firms in the United States.

Benchmark International is pleased to announce the sale of CH4 Gas Utility & Maintenance Services Limited to Smart Metering Systems Plc.

“People do not buy goods and services. They buy relations, stories and magic.” Seth Godin - American author, entrepreneur and marketer.

Benchmark International enjoyed a highly successful year in 2015, completing record numbers of deals across each of its UK and overseas offices.

M&A activity in 2015 produced record-breaking results as five of the 20 biggest deals in history were announced. On the heels of this performance, top analysts are looking forward to what 2016 has in store.

Benchmark International is pleased to announce the successful sale of Endeavour International Limited to I.M.M Hydraulics (UK) Limited.

Benchmark International has advised on the successful sale of Stevenson Grantech Limited to Trend Technologies.

Benchmark International is pleased to announce a £2.5 million deal between Manchester-based 1st Class Holidays, a leading provider of tailor-made luxury holidays, and PHD Private Equity.

Benchmark International has advised on the successful sale of The Springboard Consultancy Limited to not-for-profit organisation, The Instructus Group.

Acquisition activity in the global food sector was hot during 2015 and is expected to remain strong in 2016.  Two such examples of acquisitions in the sector last year include the announcement of the megamerger between AB InBev and SABMiller at £71bn - a deal expected to be formally completed early this year - with AB InBev reportedly selling a number of bonds to finance the takeover. The second quarter of 2015 saw the acquisition of British chocolatier, Thorntons, by Italian family-owned company Ferrero, which saw the latter acquire a 70% stake for £70 million in a deal that valued the entire group at £132 million.

International M&A expert, Benchmark International, has successfully assisted with the sale of G.B. Access Limited (G.B. Access) to Ashtead Plant Hire Company Limited (A-Plant).