SME deals market remains resillient

THE number of smaller private equity deals involving North West businesses increased last year despite a slowdown in the market.

A report by Lloyds Development Capital found that 29 deals were completed in the £5m to £50m range in 2008, compared with 22 in the previous year.

Aggregate value also rose from £408.3m to £443.3m in the same period.

The North West, along with the South East, was the only region to record an increase in both the value and volume of deals of this size, which LDC says demonstrates the quality of small and medium sized businesses in the region.

Ray Stenton, co-director of LDC in the North West, said: “Buyouts of all sizes undoubtedly slowed in the final quarter of 2008. But while most data shows that all transaction activity was down on the previous year, the report highlights the fact that small and medium sized businesses in the North West continued to provide attractive investment opportunities for private equity.”