How communications drives deal outcomes

If the past 12 months have taught us anything, it is that M&A is firmly back in business. 

Across sectors, confidence appears to be translating into activity. Foreign bidders continue to be drawn to UK assets, attracted by compelling valuations and the relative stability of the UK market.  

Deal activity involving UK targets has reached record levels, with more than $231 billion of transactions announced this year, while a wave of consumer and retail businesses, from Boots and Morrisons to PizzaExpress and Itsu, are reportedly exploring strategic options.  

At SEC Newgate, we have certainly felt that momentum. We have had a busy period, supporting clients across sale processes, capital raises, public company situations, and broader strategic communications mandates.  

Yet despite the resurgence in activity, one challenge continues to dominate conversations around the boardroom table: valuation. 

The reality is that today's valuation discussions are more nuanced than they were during previous deal cycles. Buyers are no longer simply underwriting historical performance. They are scrutinising the sustainability of earnings, the resilience of business models, the quality of management teams and, perhaps most importantly, the credibility of future growth plans. 

This is particularly evident in sectors such as consumer and retail. Whilst transaction volumes and values have rebounded, investors remain selective. The key question is not whether a company has performed well historically, but whether it can continue to grow and defend its position in an increasingly uncertain economic environment. This is where communications can make a tangible difference. 

Too often, communications is viewed as something that supports a transaction once it has launched. In reality, the most successful businesses begin preparing their narrative long before advisers are appointed or information memorandums are drafted. The strongest valuations are frequently attached to businesses that have already built a compelling market position. They have a clear growth story. They articulate their competitive advantage consistently. They demonstrate leadership in their sector. Stakeholders understand not only what the business is today, but what it could become tomorrow. 

Strategic communications helps management teams bridge the gap between performance and perception. It can strengthen confidence in a growth strategy, showcase innovation, build credibility with investors and lenders, and reinforce the qualities that make an asset attractive in a competitive process. 

As capital becomes increasingly concentrated behind a smaller number of high-quality assets, differentiation matters more than ever. Buyers may start with the numbers, but they rarely stop there. They want conviction. They want confidence. They want a clear and credible answer to the question of why this business deserves a premium valuation. 

As we look towards 2027, our sense is that communications will continue to play an increasingly important role in transaction outcomes. In a market where great businesses are competing for attention and capital, the ability to tell a compelling story may prove just as important as the financial results themselves. 

Because ultimately, valuation is not only a reflection of past performance. It is a measure of future belief.