Opportunities rise for Yorkshire firms looking for funding says Deloitte

DELOITTE says 2013 is shaping up to be a good year for Yorkshire firms looking to raise finance from the equity markets.
 
The recent gains in the stock market and improved sentiment around prospects for China and Europe, combined with the US having stepped back from the fiscal cliff, means there is a more positive environment for firms thinking about an initial public offering (IPO), believes the business advisory firm.
 
Following the success of companies such as WANdisco and EMIS who listed on the AIM market in recent years, Deloitte partner Rob Seldon says that the Yorkshire technology sector and businesses looking to expand aggressively into international markets are particularly attractive to equity investors.
 
“Yorkshire firms are typically led by strong, entrepreneurial management teams who are keen to explore financing options to meet their strategic goals. The capital markets will continue to provide an alternative option for ambitious firms looking to raise capital for expansion,” he said.
 
“Developing strong technology platforms and exporting to developing markets both involve a mix of risk and reward which, when coupled with strong management governance makes them attractive to the equity markets.”
 
Not all firms needing finance will want to list on the stock markets and Yorkshire businesses are becoming increasingly innovative in how they fund themselves, according to Mr Seldon: “We are increasingly seeing businesses finance day to day operations by generating their own cash, but for more significant capital projects businesses are making using of asset based lending and mezzanine products.
 
“The Business Growth Fund is another attractive finance pot for firms looking to grow and can provide funding up to £10m,” he added.