Regional M&A activity on track at Big Four firm
“THE regional market has responded to Brexit in a pragmatic and analytical way,” said Christian Mayo, leader of KPMG’s M&A practice in Yorkshire, as the firm announces a spate of deals following the referendum.
The Big Four firm said that it was evidence that despite the uncertainty surrounding the decision to leave the EU, there is still regional appetite for M&A activity.
KPMG advised on five major deals, including the management buy out of Belfield Furnishings, backed by Leeds’ NorthEdge Capital, the sale of North East Convenience Stores to SPAR wholesaler James Hall and the AQA Education offer for DRS Data and Research Services plc.
To deals involving pharmacies including the sale of Living Care Pharmacies to The Hub and the merger of Pharmacy2u with ChemistDirect.co.uk, backed by the Business Growth Fund.
Mr Mayo said: “The clutch of completions on which we have recently advised shows that for the right deal the environment is still conducive. Entrepreneurs, corporates and investors are continuing to pursue their M&A ambitions in cases where the deals’ fundamental business drivers are insulated from Brexit.
“Of course Brexit is impacting the market, with price pressure currently the key consequence in the region, due to the risk represented by uncertainty around consumer sentiment and the price of debt.
“However, a minority of planned transactions have fallen away. For example, some deals in this region linked to the property sector and in relation to some businesses with a particular dependence on imports in their supply chain. M&A involving companies that are expected to be impacted by any drop in UK consumer spending will also be at risk, as will those with the Continent as their key export market.
“Despite some uncertainty about the price of debt, finance is still available for high quality assets and an additional positive we are seeing is the appeal of the UK as a home for investments from overseas due to the value for money sterling represents.”
