Business Growth: The changing Yorkshire deals market

WELL-POSITIONED businesses remain attractive to buyers despite the economic gloom and challenges over finance, according to experts.

Dealmakers suggest that while the market remains subdued, activity has grown in recent months and buyers and sellers are finding creative ways to complete transactions.

Overseas buyers finding UK assets attractive and private equity houses under pressure to invest are two of the main drivers in the M&A market.

Patrick Abel, corporate finance partner at PKF, said: “Good quality companies are able to achieve excellent value for shareholders despite the difficult economic climate.”

One of the major obstacles to M&A in recent years has been a reluctance on the part of potential sellers to adjust their expectations to reflect market conditions.

Lee Collinson, head of Barclays Corporate in Yorkshire, believes that trend is starting to change.

“Vendors were valuing their businesses on 2007/08 profits whereas now it is on 2010/11 profits. That is helping deals to happen but most deals now don’t have the debt they had in days gone by.”

A new supplement from TheBusinessDesk.com, in partnership with Barclays, offers the latest insight into the Yorkshire deals market.

Click here to download it in full, and to read other features in this series.