It might be a cliché, but history does repeat itself. Investors are always too fearful approaching the bottom of a cyclical downturn and miss opportunities that in hindsight are obvious. But fundamental and empirical evidence discussed here suggests we are within range of one of the best opportunities in UK small and mid-cap in a decade
A look at history
Fact not speculation
Discounts and takeovers
This valuation discrepancy means the UK small and mid-cap market is primed for M&A – something that is happening even during the recent significant volatility as global private equity seeks to take advantage. Brewin Dolphin, Clipper Logistics, Johnson Matthey, Homeserve, John Menzies, Ted Baker, ContourGlobal and Biffa have all been subject to bids in recent weeks. As the clouds clear there will be even more reason to expect further M&A activity to drive performance.
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