Record high in deal values for Liverpool advisers
DEAL values of transactions made by Liverpool-based professional advisers rocketed by 350% to £3.1bn in 2014 compared to the previous year.
Professionals have gathered in the city to hear of the record high which shows Liverpool is leading the way as a financial powerhouse.
The report, presented by Professional Liverpool in association with financial information specialist Experian Corpfin, details deals that Liverpool advisers have worked on both in the UK and globally.
Statistics showed that Liverpool advisors acted on 93 transactions to the value of £3.1bn – up 369% on the £670,000 the previous year.
Presenting the findings to Professional Liverpool’s members on behalf of the corporate finance group were Steve Stuart, partner at Brabners Stuart and Jeff Cummins, lending director at NatWest.
Cummins said: “Liverpool advisers continue to be busy as the local economy shows encouraging signs of growth. Although the deal numbers are behind the record levels of 2013, 2014 has shown itself as the busiest year ever by value terms.”
The increase in deal values was driven by four deals totalling £2.2bn – Premier Foods’ Rights Issue, SSP Group’s flotation, the divestment of Playtech and the management buy-out of Eddie Stobart.
The report showed that the amount of deals funded by bank debt increased with banks supporting 19 deals in 2014 compared to 14 in the previous 12 months.
Stuart said: “There is still a lot of press coverage around alternative sources of debt available to SMEs but it is encouraging to see local banks playing their part in the Liverpool corporate finance market.”
The busiest sectors reported were wholesale, retail trade and repair of motor vehicles, professional scientific and technical activities with a move away from manufacturing with 21 deals in 2014 compared to 27 deals in 2013.
During the year, 57 of the transactions were in the North West with 25 in London and the South East. There were six deals in the South West, three in the East Midlands and 14 in Yorkshire. A two year analysis showed that deals worked on by Liverpool advisors covered 17 countries including the Netherlands, Morrocco, Bermuda, South Africa, Japan and the United States.
Stuart added his concern that the value of private equity deals fell quite significantly. “Advisors are having to go off patch to service clients’ needs in this important time,” he said.
Professional Liverpool’s chief executive John Hall said: “The aim of the report is to give a detailed picture of Liverpool’s corporate finance market and we hope this provides a unique and informative perspective.”
Professional Liverpool represents and promotes around 5,000 individuals in the Liverpool City Region’s professional and financial services sector.
