Market for private equity deals improves
THE value of smaller private equity investments involving North West target businesses more than doubled last year, according to a new survey.
The Mid-Market Barometer report, published by private equity firm LDC and trade magazine unquote, showed that the the total value of mid-market deals completed in the region rose to £211m last year, compared with just £98m in 2009. However, this remained significantly lower than the £443m achieved in the same space in 2008.
The report, which defines mid-market deals as having a value ranging between £5m-£50m, said that nine deals were completed within this price branding during the year, compared with seven in 2009. Notable deals included LDC’s own buy-outs of Bury-based luggage firm Antler from administrators and Manchester green energy consultancy firm Matrix.
Carl Wormald, head of LDC’s operations in the North West, said: “The resurgence of the buy-out market in the region last year indicates that there is strong supply of good quality North West small and medium-sized companies.
“The relative return to economic stability, which has allowed investors and management teams to gain improved visibility over predicted earnings, market growth and the stability of companies, has been central to the upturn in deals in 2010 versus 2009, from what was clearly a very low base.”
“As a key region for M&A, private equity will continue to look to North West mid-market companies in 2011 to drive growth and realise successful exits,” he said.
