In June, Spectris, the high-tech precision measurement firm, was bid for by private-equity giant Advent International, which prompted a bidding war. In a year marked by a large number of takeovers, this one stands out. It was bought because it is a high-quality global leader that was too cheap. This is more than just another deal – it’s a profound warning for investors in Britain’s most respected companies.

For more than a decade following the 2008 financial crisis, a select group of top UK firms, including Spectris, were the darlings of the stock market. Their reliable profits and steady growth, in an era of rock-bottom interest rates, led investors to push their valuations to unsustainable heights. Since their peaks in 2021, however, this narrative has changed. Many of these once-admired firms, from industrial engineers to specialist food-ingredient makers, have seen their share prices plummet, some by more than 50%.