Deal activity expected to increase in Q2, PwC survey finds
BUSINESS leaders in the Midlands are more confident than they were at the start of the year that deal activity will pick up, according to a poll by PwC.
The firm said 72% of business leaders in the region said they are confident that deal activity in the region will increase during the second half of 2011, although 45% believe lenders are still reluctant to provide leveraged finance.
Despite continuing concerns about access to finance, one in five business leaders say some lenders in the region are increasing the funds available for corporate loans and leveraged finance.
Matt Waddell, head of corporate finance at PwC in the Midlands, said: “The deal market in the region has been subdued for some time and it is good to see that businesses in the region are more confident of an upturn.
“Lender confidence remains an issue for the marketplace, particularly when it comes to leveraged finance, and this is likely to mean a slow rate of pick up in deal activity. It is also interesting that every one of the business leaders polled believes the ‘refinancing wall’ is likely to impact on the ability of private equity-backed companies to compete for funding.”
PwC said the optimism may be due to recent IPO activity in the technology sector and reports that some lenders may be increasing the funding available for corporate deal-making.
Mr Waddell said: “It is heartening to hear that some business leaders are reporting that certain lenders are increasing the funds available for deals. Lenders are always interested in looking at quality businesses. We will have to wait and see if this translates into more deal-making over the coming six months.”
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