NW Q1 inward investment hits five year high
OVERSEAS investment in North West firms has hit a five year high, with 17 deals valued at £538m completed in the first quarter of 2013.
The figures, released by Experian, follow a steady upward trend after hitting its lowest point in the second quarter of 2009.
Despite the rise in inward investment in the North West, outbound investment has fallen in Q1 2013 to five deals compared to eight in Q1 2012.
This is in contrast to the UK as a whole which has experienced a slight upturn in outbound transactions over the last two quarters. However, at 95 outward deals since 2010, the North West is still out performing other regions, including the Midlands at 78 deals and the South West with 60 deals over the last two years.
During January 2008 to March 2013, the top industries attracting overseas investment in the North West have been manufacturing, with 124 deals worth a total of £1.25bn, professional and business activities with 66 deals worth £1.46bn, Wholesale, Retail and Repair at 61 deals worth £734m and Computer Activities with 47 deals at a value of £369m.
Small to medium sized enterprises (SMEs) have proven to be the most attractive to overseas investors, thanks to their existing infrastructure and growth potential. 65.5% of companies acquired in the North West had an annual turnover of under £20m.
The biggest investor in the North West over the last five years has been the US with 76 deals worth a total value of £1.56bn. France followed with 16 deals worth a total of £226m along with Germany with 12 deals at a total value of £56.7m.
Richard Bolton, head of Experian Corpfin UK&I, said: “The rise in the level of inbound investment in the North West in Q1 2013 is a great boost for the region and the appetite for deal making remains strong. Many large overseas businesses, holding large cash reserves are actively seeking strong, strategic investment opportunities. The quality and range of businesses and skills in the region is attractive to these overseas investors and the established deal making community in the North West also plays its part.”
The findings by Experian were presented at a Manchester seminar yesterday, where firms in the North West were urged to harness international opportunities to grow. The seminar was hosted by Experian and private equity firm Dunedin, with support from the Institute of Chartered Accountants in England & Wales (ICAEW) Business Advice Service.
