North West deals market remains unsteady
The overall value of North West buyouts increased dramatically in the first half of 2010 to £1.47bn, more than three times the total value for the whole of 2009 (£434m), according to new figures from the Centre for Management Buyout Research (CMBOR).
However, the number of buyouts during the second quarter dropped to £219m from £1.25bn in the first three months, although these were somewhat skewed by the £955m sale of Handforth-based retailer Pets at Home.
Of the £219m figure for the second quarter, £158.8m of this comprised a purchase by Telefonica of Isle Of Man-based Manx Telecom.
Indeed, there were just 22 deals completed in the first half, compared with 29 during the last six months of 2009. Of these, 17 were in the sub-£10m bracket and had a combined value of £28m. Eight businesses were bought out of receivership, but there were two deals done in the £10m-£100m bracket and three worth more than £100m.
John Walker, director at research sponsor Barclays Private Equity, said: “The deals market has seen a strong start to 2010, driven by a flurry of large secondary buyouts which suggests that private equity is returning to the market. Furthermore, instances of businesses being bought out of receivership in the first half of 2010 were down against the same period in 2009, confirming that economic conditions are improving.
“However, there has been a slowdown in the North West deals market in Q2, although it is not surprising that momentum has flagged, taking into account uncertainties surrounding the recent election, proposed public sector cuts and volatility in global equities.”
