Blog – June 2020

New Drivers

Delighted to say that we completed a transaction last month in the agri-tech space. We brokered the sale of Orion Future Technology to the Milbank Group. Agri-tech is a good example of a sector that is likely to continue to prosper despite the disruption wrought by COVID-19. Although the deal was originally agreed prior to lockdown it is nonetheless pleasing to complete the sale with lockdown still in place. See our press release for more information.

Deals are still happening across the tech sector and we expect this to accelerate as social changes become more apparent, though we also expect valuations to come off their historic highs. Change always drives innovation and innovation tends to drive M&A activity as buyers look to acquire new technologies and/or capabilities.

It also looks like we are many years from cash paying any sort of return – indeed the first negative yield bond was sold in the UK last month, so it might even start to cost you to hold cash! Not surprisingly people are looking for alternative returns and we are now seeing plenty of acquisitive interest. If you have a strong business model with recurring income that is very attractive in the current climate.