Fourfold increase in Yorkshire buyouts
THE value of buyouts quadrupled in Yorkshire to £1.17bn in the second quarter, according to new figures.
Deals worth £1.46bn were also completed, compared to just £311 in the same period last year, the Centre for Management Buyout Research found.
The numbers are a positive indicator for the economic recovery but rested heavily on a small number of high value transactions including the £500m secondary buyout of DFS and the £350m buyout of Card Factory,
Steve O’Hare, director at Barclays Private Equity in the North which sponsored the research, said: “After an encouraging upturn in Q1, Q2 has provided further evidence of the beginnings of a recovery in the Yorkshire and Humber buyout market. This is reflected in the four-fold increase in the total value of deals and the average value for the region.
“Despite this, there remains a lack of buyouts in the £10m to £100m bracket, which is reflected in the fact that the three large deals completed in Yorkshire and Humber in Q2 made up 97 per cent of the overall deal value in the region.
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“While results for Q2 are encouraging on the whole – particularly in light of concerns surrounding the recent general election and the impact of public sector spending cuts – they represent only a step in the gradual recovery of the regional buyout market.”
The largest source of deals in the second quarter was buyouts of family or private companies.
