NW deal volumes decline but values stable
DESPITE a fall in the volume of deals across the region in 2009, total values remained stable, and the North West proved to be the most active region in the country, after London.
There were 597 deals announced in the North West in 2009, a 26% drop on 2008’s figures which saw 809 deals announced, new figures reveal.
Despite this, deal values for the year appear to have remained stable, with just a 1% fall on the previous year to £9.35bn, according to business information company Corpfin, which tracks mergers and acquisitions, flotations, rights issues and placements.
In the final quarter of 2009, 132 transactions were announced in the region, a 14% decline on the previous quarter’s 154 deals. However, deals value dropped further, by 27% to £2.83bn, from £3.87bn in the third quarter.
A total of 22 large deals (£100m+) were announced in the region, compared with 19 deals in the previous year.
The mid-cap range (£10m to £100m) saw declines of 45% and 28% in volumes and values respectively, with 2009’s 63 deals worth £2.48bn comparing poorly with 2008’s 114 deals and £3.43bn of total value.
Small deals of under £10m accounted for 107 transactions worth £342.3m in 2009, whilst 2008 saw 200 transactions worth £607m.
Brian Rarity, strategic consultant for Corpfin, said: “The North West experienced a decline in deal volume and deal value very much in line with the UK average – deal volumes down some 25% year-on-year but with a static total deal value.
“Large-cap deals, by definition, mask the activities in the mid-cap and smaller-cap sectors. While the large-cap sector has not underperformed, the mid-cap results in Q4 compared with Q3 are reassuring. There would appear to be grounds for quiet optimism in the North West region.”
Deloitte was the most active financial adviser in the region during the year, acting on 13 deals, followed by BDO and Grant Thornton, which had 10 deals each.
Halliwells was the most active law firm, handling 25 deals, followed by DLA and Eversheds with 23 and 22 deals respectively.
Nationally, there was a 25% fall in deals volumes to 4,269 with a stable deals value of £272.6bn.
