Confidence returns to Manchester says report
LEVELS of investment and investor confidence in Greater Manchester have begun to grow after the rapid decline associated with the 2008-09 financial crisis.
That’s according to research carried out by the New Economy, one of the six Association of Manchester Authorities (AGMA) commissions which have a focus on creating economic growth and prosperity.
Its study, which focuses on mergers and acquisitions (M&A) and corporate finance activity, indicates that the city has experienced consistently higher levels of M&A activity over the last decade compared to similar UK city regions.
And there are signs that confidence is returning with deal activity increasing in each of the three quarters since the end of 2009.
The report found that a significant amount of deal activity has stemmed from London and the South East, reflecting of the strength of Greater Manchester’s business base, while some 39% of deals originated from the US and 44% from Europe.
Alex Cole, senior economic analyst at New Economy, said: “This research shows that there has been strong and growing investor confidence in Greater Manchester businesses over the last decade, especially in the city region’s financial and professional services firms. The fact that this confidence appears to be returning bodes well for the strength of the Greater Manchester private sector.”
Steven Lindsay, corporate finance partner at accountancy firm CLB Coopers, said: “It seems that activity is picking up and should continue to do so, even if not to pre-2008 levels. CLB Coopers has advised on six deals since July 2010, worth a total of £40m, and we have more deals expected to complete in early 2011.”
‘Mergers and Acquisitions activity: Manchester City Region in Focus’, is part of the New Economy Working Paper series and is available at www.neweconomymanchester.com
