Peel Hunt Warns of AIM Takeover Surge

A report by Peel Hunt warns that up to a third of small and mid-cap firms on London's AIM stock market could be vulnerable to takeovers in 2025, driven by a significant decline in UK share prices and increasing interest from private equity and foreign buyers. The report indicates that this potential surge in acquisitions arises from depressed valuations, with many AIM companies seeing a drop of over 30% in their share prices. Michael Nicholson, head of advisory at Peel Hunt, emphasizes that boards must proactively prepare for potential bids with robust defense strategies, as the rate of acquisition approaches has been rising sharply. In 2024, approximately 5% of all UK-listed companies received public takeover offers—the highest rate in recent years. The anticipated takeover wave poses a threat to London's status as a leading global financial center, with many companies already delisting or relocating their primary listings. Analysts attribute this trend to a combination of limited liquidity, reduced valuations, and a challenging regulatory environment.