Bottoms up: Why UK mid caps are such a refreshing M&A sweetspot right now

Will 2021 be a vintage year for domestic stocks?

It would be difficult to miss the fact that UK mid-cap companies are attracting a renewed level of bid interest at present. So much so that, every morning, when I log in to my virtual workplace, I am mentally preparing myself to see a new headline about the next one to be bid for.

In particular, renewed demand for UK-quoted companies from large and experienced foreign buyers suggests to me that other investors continue to overlook an opportunity. Mid cap companies are at the centre of this interest from overseas companies (so-called "strategic buyers"), private equity (PE) or PE-backed purchasers. It is always helpful to observe what the corporate and PE sectors are doing since we share their long-term mentality. If the pick-up in "inbound" activity is a guide, it seems to me these bidders are currently thinking: "UK shares are cheap, sterling is weak, this ...