Notwithstanding the UK's more 'local' challenges with Brexit, wider opportunities abound. Europe is on the up with growth across the board, and with it, the emergence of several important trends.
The biggest is technology. It is technology in healthcare, it is technology in financial services, it is technology in support services, it is technology in industrials. Any deal badged as technology is attracting interest as companies and financial sponsors chase innovation.
Hot on the heels of technology is fire power. Corporates and financial sponsors are awash with cash.
The next is capacity or sharing of risk. A surprising increase in cooperation and joint ventures between erstwhile competitors to utilise capacity or risk share in emerging markets is developing. This is notwithstanding an increased focus by anti trust authorities on deals.
National Regulators are talking to each other more than ever across the EU. Buyers need to start earlier on antitrust analyses and arguments to the regulators to avoid disappointment where another bidder can move quicker. Deal certainty is an important factor in this market.
Finally consolidation is a trend. Some call it specialisation or concentration on core activities but the day of the conglomerate is out of fashion and activist shareholders are pressing boards to divest of non-core assets
So, 2018 looks promising. Technology over capacity, consolidation over diversification and demand over supply for good assets is the order of the day, with an evermore Europe-wide organised watching brief from regulators to be conscious of.
Tech giants' involvement in healthcare is driving a 'perfect storm' in healthtech deals Share