Q1 deals values rise, despite fall in volumes

NORTH West deal values increased by 30% in the first quarter of 2010, despite volumes falling by more than 21% compared to the end of last year, according to figures out today.

There were 115 transactions announced in Q1 2010 in the North West, down from 146 in the last quarter, a 21.2% drop, said financial information company Experian Corpfin.

However, deal values increased by 30% in comparison to the final quarter of 2009.

The £955m Pets at Home deal was the single biggest transaction in the region – helping to push up values considerably – and a total of six £100m+ deals were announced in the first quarter, down from nine in the previous quarter.

Rothschild was the most active financial advisor in the region with five transactions, while DLA Piper topped the league table for legal advisors by volume and value with seven assists.

Wendy Smith, business development manager at Experian Corpfin, said: “At the start of 2010, feedback from the corporate finance community was more optimistic and talked of a more realistic approach to valuations amongst vendors.
 
“However, the lower number of deals tells us that the market is still very fragile.  Although funding has been available where strong risk free businesses have been involved, there is a still a funding gap and this is proving to be the main obstacle to getting the deals off the ground.”