Dealmaker confidence on the up, says northern survey

LEADING bankers, corporate financiers and lawyers have almost unanimously said they believe the Northern deals market will remain stable or rise over the next 12 months.

An annual survey by Deloitte has revealed that not one of the dealmakers polled expects deal volumes to fall in 2010.

An overwhelming 97% of dealmakers predict that prices paid for businesses will remain stable or rise over the coming 12 months and not one of those interviewed expect deal volumes to fall.

More than 100 members of the North’s corporate sector were surveyed for their attitudes on the private equity market.

Paul Lupton, head of corporate finance at Deloitte in the North West, said: “There is a feeling of cautious optimism in the North West private equity community.

“Although none of the respondents to this year’s survey predicted deterioration in economic conditions or deal activity, dealmakers are aware that there is still a long way to go before a complete recovery.”

More than half (56%) of those who took part in the survey predicted that recovery would take at least 18 months to be established. 

The results also show a much less bullish view of the year ahead from respondents in the North West compared with their counterparts across the Pennines.

Almost half of dealmakers in Yorkshire (47%) saw conditions improving over the course of 2010 compared to just 18% in the North West. 

Around 24% of dealmakers in this region expect the number of transactions reaching completion to rise, compared to 74%of their colleagues in Yorkshire.

Expectations of average deal values in 2010 were relatively more aligned, with 35% and 43% predicting an increase in the North West and Yorkshire respectively.

The survey also revealed that, just as in the past year, the majority of deals in 2010 look likely to involve family owned and private businesses.

Mr Lupton added: “Expectations are building that transactions will be easier to complete in 2010, and those surveyed identified manufacturing, healthcare and technology as the sectors presenting the greatest opportunities for private equity houses.

“Although there are some disparities between views in the North West and Yorkshire regions, overall the survey reveals that private equity is at a vital turning point in its recovery.”