Liverpool M&A sector holds great promise for accountancy giant

Accountancy giant KPMG says the mergers and acquisitions (M&A) market in Liverpool this coming year could be its best ever – despite Brexit.

Euan West took over as head of the Liverpool operation, on the waterfront Princes Parade, a year ago.

He was previously head of clients and growth for KPMG’s national markets business in the UK.

Assessing the operation one year on he admitted he is encouraged by progress across the board at the centre, which now employs 110 staff.

KPMG set up a permanent M&A team in Liverpool three years ago, and Mr West said the investment is being reflected in the levels of business coming in.

“The M&A team has been focusing on originating opportunities in the Liverpool City Region.

“I am very pleased with how they now get received around town. There seems to be an awareness and recognition that KPMG has taken it seriously.”

KPMG worked on the acquisition of Liverpool’s Brookes Bell by insurer Thomas Miller last year, and Mr West said opportunities are continuing into 2019: “We have had a flying start to this year, which will be a tremendous year.

“I expected Brexit to slow that market down, but our pipeline is as encouraging as it has ever been.

“As we start January, it is really encouraging and we could have our best year ever. I am encouraged by what can come.”

He said the Liverpool office will draw on expertise within KPMG to build on this: “During financial year 2019 KPMG in Liverpool will be seeing a familiar set of faces, such as data analytics, or systems IT infrastructure people.

“They will be getting a lot more done there, because the market is there. Twelve months ago if I thought we would be here I would have been very pleased.”

He believes business conditions in the city region reflect encouraging signs of growth in the local economy.

“In Liverpool there is an interesting dynamic,” he said.

“There is a small number of listed businesses, then a good number of large privately-owned businesses, like Bibby, Peel and Shop Direct.

“But Liverpool is also a heartland for creativity and innovation, and this is what I think we are starting to see in Liverpool.

“The missing bit has been the ‘middle piece’, the £2m, £3m and £4m turnover businesses that are now becoming £30m and £40m turnover businesses and I can see that happening in places like the Knowledge Quarter and Baltic Triangle, which is really encouraging and more reason for us having a proper, meaningful presence in town.”

He said the Liverpool office has always boasted a very strong audit and tax unit, which continues to impress.

The audit business has had a couple of really good wins, in Smurfit Kappa and Tata Chemicals Europe, he said.

“These are significant jobs for Liverpool, and have reinforced our audit brand, that was always strong.”

He admitted: “Our tax business continues to surprise me.

“We work with a huge range of businesses over the Liverpool City Region, supporting on tax.

“We deal with a lot of mid-market, privately-owned businesses, and I have been really pleased with the way that has gone. We have penetrated more of that mid-market, and plan to continue to do so in Liverpool.”

Looking ahead to the next year, he said the Liverpool office is focusing on audit quality: “As it should be”, he added.

And he said there is an opportunity to strengthen the tax department in certain specialisms.

“We could invest more resources in Liverpool,” he said.

“I would love to be able to do that by recruiting more people from Liverpool or from around the Liverpool City Region, or people relocating back to the region from London, for example.”

Mr West also believes the political landscape in the city, for so long riven by division and infighting, is moving towards a more collaborative platform, which can only be good for business.

He said: “There has been really positive signs of progress over the past 12 months. Things are beginning to come together in a way you might hope.

“There is a new chief executive at Liverpool Council, while the Combined Authority is building a strong mandate from the regional authorities and driving investment for Liverpool and the surrounding authorities.”