Failing companies recieve boost from Turnaround Investors
Specialist turnaround investors are helping to rejuvenate the economy after investing nearly £1bn in failing companies over the past year.
While many companies can still be acquired by using the traditional administration model, this change in approach allows investors to step into businesses while they are still solvent to protect the troubled businesses’ integrity.
There are around 60 specialist turnaround investors in the UK, 80% of which have seen more opportunities to complete a solvent acquisition than a year ago.
These funds are typically established by small groups of high net worth individuals who have a background in restructuring and are familiar with the timing requirements of a business rescue.
Mark Firmin, KPMG’s head of restructuring in the north said: “It is difficult to estimate the total fire power of the UK distressed Investor Company as their style is to tap into their network of contacts when the right deal comes along.”
“With such a large pool of cash to invest, this emerging breed of specialist investor is good news for business rescue in this region and further afield.”