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Clifford Chance

Clifford Chance

UK Market Practice in Private Equity

A unique analysis of UK trends in transaction terms during 2020

Our UK Market Practice Survey comprised transactions with private equity and other financial sponsor sellers and included both auction sales and proprietary deals.

All transactions were led out of London, but involved a range of UK and cross-border targets across a variety of sectors. We analysed key issues such as consideration mechanics, vendor participation, conditionality, termination rights and warranty limitations. 

UK themes

A comparison of the results from this survey and previous surveys show that despite the challenges of the Covid-19 pandemic, the market remained largely seller friendly in the last twelve months. Some of the key themes covered in the report include:

Simon Tinkler comments on the UK market

"Despite the impact of the pandemic, in the second half of 2020 we saw the private capital M&A market rebound and deal terms remain largely seller friendly. 2020 also saw an increase in protectionism, with the introduction of tougher foreign investment restrictions and negative conditions in documentation."