Our latest analysis of transactions among UK private equity backed businesses suggests M&A activity in the sector is remaining resilient. There has been a slight deceleration in both the volume and value of transactions but levels remain positive and our survey of market conditions, supported by our own experience, suggests sentiment remains broadly positive despite uncertainty about May’s general election.

Interestingly, a majority of those surveyed thought secondary buy-outs would continue to increase in importance as a deal source while the sale of family and privately owned businesses is also expected to be a growing source of deals with owners tempted into transactions by strong valuations.