Lumina event at The Connaught Hotel, Mayfair, London
Lumina hosted a breakfast event at The Connaught Hotel in London covering the firm’s 2024 M&A outlook report, deal opportunities between the UK and the Middle East and how to overcome some of the challenges of cross-border deals.
A hugely interactive and engaging session and thanks to all of our clients and partners. Key topics raised and discussed were:
PE exits and IPOs: Exits are still the no. 1 challenge for PE companies seeking to transact in the region. Across the GCC there were 47 IPOs last year (23 in the UK), and this is expected to grow in 2024;
Along with more realistic valuations, better access to a broader range of funding solutions (including private credit) and the ongoing creation of regional champions, this will drive deal and exit opportunities
Regional Champions: The focus on developing innovative Middle East companies of scale, ultimately with the ability to compete internationally, will be a driving force of M&A activity;
This provides a platform for attracting talent, job creation, increased investment in R&D and new technologies
Cross border M&A activity: Sovereign Wealth Funds continue to be the major players in this space, but there is an emerging trend of regional private companies seeking international opportunities to complement their inorganic growth strategies;
Mid-market deal ranges ($30m - $250m) are expected to continue being the most prevalent amongst M&A activity within the Middle East
Giga and Megaprojects: $1.3tn of opportunity in KSA alone. Continues to drive interest for international firms seeking to innovate, grow and succeed in the region
Corporate Governance: Understanding of, access to and implementation of corporate governance processes and systems is increasing. This is vital to facilitating further equity capital market activity and reflects the increasing sophistication of international interest in the region.
Board succession planning: needing continued focus given generational changes underway
