Cavendish, the leading investment bank for ambitious companies, has delivered a standout performance in its M&A division this year despite UK M&A activity levels lagging 2023 deal numbers. The firm has completed 21 M&A transactions year-to-date, underscoring Cavendish’s ability to navigate a challenging market backdrop.

Technology and Business Services contributed a significant proportion of those deals, but the travel sector was a particular bright spot in an otherwise challenging consumer sector. Cavendish completed 4 deals in the travel sector in 2024 (Travelopia’s Events Division, Distant Journeys, Inside Travel Group and Much Better Adventures), and there are several more in the pipeline, as travel spend continues to be a high priority for consumers.

Pre-budget deal activity provided another highlight, with 8 transactions completed in the month leading up to the government’s announcement on capital gains tax (CGT). The firm moved swiftly to help clients pre-empt the rise in CGT on company sales to 24%, which, while significant, was less punitive than some had feared.

Overseas buyers have also played an increasingly prominent role in M&A this year with overseas trade and private equity buyers involved in over 50% of Cavendish M&A transactions, emphasising the strength of the firm’s international reach via its presence in over 40 countries worldwide. Cavendish has advised on several high-profile transactions involving international acquirers this year, including the sale of Holyhead Towing to Fortuna, the Falkland Islands’ leading fishing and maritime group.

John Farrugia, Co-CEO of Cavendish said: “2024’s strong performance has paved the way for a bright start to 2025. The firm has just announced the opening of its new Manchester office, marking a strategic expansion aimed at serving the growing market for regional M&A and investment activity.”

Julian Morse, Co-CEO of Cavendish added: “The recent budget, while mixed in its implications, has created conditions that should support renewed momentum in the coming year. While CGT on business sales has risen, the retention of inheritance tax (IHT) relief for AIM-listed shares – albeit at a reduced level – offers a degree of continuity for investors. The removal of IHT relief for family businesses, however, is expected to accelerate sales or public listings as owners seek to avoid tax burdens on generational transfers. Meanwhile, signs of life in the IPO market are emerging, with Cavendish’s Equity Capital Markets team reporting a solid pipeline of potential offerings.”