Robust year for ‘resilient’ northern dealmakers
Dealmakers from Dow Schofield Watts’ Northern offices recorded another strong year in 2019, with activity levels holding firm against the backdrop of a quieter deals market.
The firm’s corporate finance and transaction services teams in the North advised on 69 deals worth £966m during the year, similar to 2018 when they completed 68 deals worth £1.07bn.
The latest results follow several years of significant growth for Dow Schofield Watts. Since 2015 it has seen a three-fold increase in deals value. Across the firm as a whole, 2019 was its best year yet.
During 2019 the group also expanded its Pandea Global M&A network, which now covers 20 countries and is the ninth largest independent M&A network in the world.
Roger Esler from the Yorkshire & North East corporate finance team said: “We have seen strong activity across all sectors and, against the backdrop of a quieter deals market, are pleased to have bucked the trend.
“There are two key factors that have helped – firstly, businesses appear to be more resilient to the political uncertainty we have had in recent times. Business owners recognise that they can’t continue putting their strategic plans on hold indefinitely and have been pressing ahead.
“Another factor is the abundance of funding available, which has been really important to counter the macro economic factors at play. If funders are competing hard for your business it gives owners the confidence to press ahead with their objectives.”
During 2019 Dow Schofield Watts’ Yorkshire & North East office advised on deals including the £60m investment in AFI-Uplift by Pricoa Private Capital and acquisition of Facelift, three strategic acquisitions by Operam Education together with equity investment by the Business Growth Fund and the BIMBO of Star Brands funded by Mobeus Equity Partners.
Sophie Colloby, head of the transaction services team in Yorkshire & the North East, said: “We expected a slow-down in the second half of the year but that certainly didn’t materialise and we have been pleasantly surprised by the level of activity. We work with some highly acquisitive corporate clients and it has been business as usual for them.
“We also have good deal visibility into the coming months, and the number of vendor due diligence opportunities suggests that, regardless of uncertainty, owners will continue bringing their businesses to market, which further supports our optimism for 2020.”
Dow Schofield Watts now ranks as a top 75 accountancy firm, with over 70 professionals across the UK. It plans to appoint 20 new partners in the next 18 months as it continues to add new service lines and offices.
James Dow, founding partner, said: “Our business has been expanding rapidly in recent years and the current changes taking place within the accountancy market offer potential for much further growth. The Dow Schofield Watts business model offers a genuine alternative to the traditional accountancy and advisory firms and one that is proving attractive to both professionals and clients alike.”
