Mid-market firms feeling pressure to sell – report

RESEARCH from local law firm Mills & Reeve has revealed that nearly a third of Birmingham mid-market companies are poised for sale.

And three fifths of the city’s mid-market business leaders report an increase in investor interest in their company.

But almost a quarter feel “forced” into the decision to sell.

Mills & Reeve suggests the Birmingham mid-market could now be on the verge of a wave of pressurised sales.

Its study – Full Scale Ahead – reveals that many Birmingham business leaders are looking to sell even if they could scale up and increase the value of their company in the long term.

Nearly a third (29%) of Birmingham’s mid-market business leaders are actively planning on selling their company.

At the same time, nearly three fifths (59%) are also experiencing an increase in investor interest in their firm.

While this could be interpreted as a sign of a dynamic mid-market, the report reveals that in some cases the decision to sell has been made due to a number of factors beyond the business owner’s control.

Almost a quarter (23%) of the Birmingham business leaders surveyed feel “forced” to sell their business while a fifth (21%) fear that they will “miss the boat” if they do not exit immediately and deal activity dies down.

Peter McLintock, a corporate partner in Mills & Reeve’s private sector business services team, said: “The mid-market currently accounts for a quarter of the UK’s turnover.

“Not only is this stalwart of the economy capable of delivering even more growth and jobs, from its ranks will emerge Britain’s next generation of world-leading large enterprises.

“While selling may be the right choice for some companies, scaling up can, with the right support, offer greater returns for business owners, shareholders and the UK economy as a whole.”