Gambit Corporate Finance has reported its best ever year after acting on transactions with a combined value of £140m in 2023.
The Cardiff-based mid corporate finance advisory firm, which was set up in 1992, acted on 19 fundraising and merger and acquisition (M&A) related deals.
Gambit, which is the UK’s longest established corporate finance advisory firm, said its strong performance was set against a challenging year for M&A activity against challenging macroeconomic headwinds and increasing geopolitical tensions.
Despite decreased wider market activity it said average enterprise values to Ebitda (earnings before interest, taxes, depreciation and amortisation) multiples on transactions it advised on were strong. This is a positive trend which it is forecasting will continue this year.
Deal highlights last year for Gambit included an up to £21m sale of Nantgarw-based health, safety and environmental training group, Astutis to AIM listed Wilmington, the sale of South Wales-based temperature control storage venture Wild Water Group to real estate investor Dalancey, and advising Cardiff headquartered private hire vehicle operator Veezu on raising growth capital with alternative investment fund Tresmares and Santander. It also advised Veezu on its acquisition of Yorkshire-based taxi firms City Taxis and Excel Taxis.
Gambit also acted for Newport-based timber venture Premier Forest and three acquisitions.
Gambit is the sole UK shareholder in Corporate Finance International (CFI) a group of global corporate finance advisory firms with 28 offices in 18 countries and some 250 fee earners. A significant proportion of Gambit’s deals in the past decade are cross-border and involve non-UK counterparties.
Gambit partner Geraint Rowe, said: “We are extremely proud that Gambit achieved its best ever year in its 31-year history in 2023, despite some turbulence in UK M&A markets. In most of our core sectors, sellers have an optimistic outlook for 2024.
“We have invested heavily in the growth of the firm and we have a team of unprecedented quality. This, coupled with our unmatched global reach via Corporate Finance International means that we are expecting the momentum generated in 2023 to continue in to 2024 and beyond.
“The abundance of capital held by private equity funds, venture capital investors and acquisitive companies, coupled with a lowering cost of capital should fuel increasing M&A volumes.”
Jason Evans, partner and head of debt advisory, said: “Following multiple waves of interest rate hikes in 2023, the Bank of England’s Monetary Policy Committee’s decision to maintain current rates has stabilised the credit market, with interest rates expected to soften during 2024.
“The normalisation of a higher interest rate environment has led to an uptick in available funding sources to help fuel market activity, despite the assumption that banks will continue to leverage restrictive lending policies.
” Non-traditional funding sources have gained popularity amidst an evolving credit landscape. This has also supported continued optimism in 2024”.
Partner Frank Holmes anticipates increased deal flow ahead of a General Election later this year – or at the very latest in January.
He added: “Traditionally, Gambit has seen more deal activity leading up to a UK General Election; in part due to potential capital gains tax implications of different administrations. An election in H2 2024 is likely to act as a catalyst for deal activity in the UK.
” A combination of demonstrable and sustainable trading performance post Brexit and Covid plus pent up succession pressures facing ageing business owners will fuel deal activity in 2024 and 2025.”
