FTSE 250 events business UBM (UBM) is a potential takeover target thanks to sterling weakness.

Like the companies discussed in our UK M&A Champions article published on 11 August, UBM has become cheaper to overseas buyers because of the fall in the pound. Currency movements will boost earnings and Liberum recently upped its price target from 680p to 800p to reflect this situation.

The newly streamlined operator, which completed the divestment of its PR Newswire business in June, would also make a more digestible morsel for private equity firms which are increasingly attracted to the high margins and strong cash flow associated with the events sector.

Liberum analyst Ian Whittaker comments: ‘There is a considerable amount of private equity money targeting the events sector, and we think following the sale of PR Newswire and depreciation of the pound, UBM is now a significant M&A candidate itself.’

The company returned £245 million of the £490 million proceeds from the sale of PR Newswire as a special dividend to shareholders but the remainder can be ploughed into deals to increase its exposure to a relatively buoyant US events sector.

At 697p the company has opportunities to build on its ‘Events First’ strategy through acquisitions assuming it does not fall prey to a bid itself.