Deal numbers dropped drastically in 2009 research reveals
YORKSHIRE saw the number of deals drop by almost half in the last quarter of 2009, according to research by Experian.
The number of transactions fell 48% to 51 deals in quarter four compared to the previous quarter when 98 transactions were recorded.
A total of 299 transactions were announced last year – a 38% drop on 2008’s figures, which saw 480 deals announced.
The total deal value decreased in Yorkshire in the fourth quarter to £232.9m – a fall of 56% on quarter three’s figure of £525.7m.
Analysis of the year-end results show that the total deal value fell around 80% from £7.9bn to £1.5bn.
There were no large deals (deal with a value of more than £100m) recorded in the final quarter.
The biggest deal of the year for the region was SIG, which raised £341m through a shareplacing in March.
A total of four large deals were announced in 2009 totalling £649.5m while 2008 brought in 12 large transactions worth £6.2bn – a decrease of 67% and 90% in volume and value respectively.
Mid-cap deal numbers (deals valued between £10 and £100m) fell by 45% from 11 to six deals between quarter three and quarter four with value declining to £209m to £272m.
Yorkshire also witnessed a decline in deal volume of 35% from 43 to 28 deals and a decline in value from £1.3bn to £785m.
Small-cap deals (deals value under £10m) accounted for 10 transactions and a deal value of £23.8m in the final quarter compared to the previous quarter’s 17 deals and £53.2m deal value.
Analysis shows that the value of small-cap deal quarter-on-quarter fell by 55%.
Across the UK, deal activity fell by 24.5% with only 4,269 deal compared to 5,656 transactions in 2008.
More than £272bn worth of transactions were announced up by 0.22% on 2008.
Brian Rarity, strategic consultant for Experian’s Corpfin business, said:”Yorkshire saw somewhat larger declines in deal volumes and values than were evident in the UK as a whole, comparing the full year 2009 with 2008.
“The picture is no brighter if one looks at quarter four of 2009 against a backdrop of quarter three – there is still little evidence that the situation is showing the sort of improvement that might lead one to feel that the sector was recovering. Clearly some regions have suffered more than others in terms of dropping deal values and volumes.”
Experian’s research also revealed the most active financial and legal advisers in the region in 2009.
The top five financial advisory firms were Deloitte and BDO with five deals followed by JP Morgan & Chase, Baker Tilly four and Sterling Corporate Finance all with four deals.
The top five most active law firm were DLA Piper with 13 deals followed by Eversheds with 12, Walker Morris with 12, Pinsent Masons with 10 and Hammonds with eight.
