AIM juniors left waiting for M&A activity

M&A activity on London’s junior market has plummeted, with just 49 companies on Aim taken over during the 12 months to the end of June 2013 – the lowest number for seven years.

Research by accountants UHY Hacker Young found the number of takeovers was down 26 per cent from 2011/12 and was less than one third of the number in the boom year of 2006/07, when 149 Aim-listed companies were snapped up.

However, with the recovery of the UK economy appearing to gain momentum, UHY Hacker Young partner Laurence Sacker said he expected “more activity” and buyers could need to pay a “significant premium over current share prices”.

Last month, Aim-listed celebrity jeweller Theo Fennell was bought by private equity firm EME Capital in a deal worth 12.5p-a-share – double its closing price the day before the takeover was announced.