Partner Article

North West buyout market regains some buoyancy

The market for buyouts in the North West showed signs of recovery over the first half of the year, research from LDC and unquote suggests.

The total volume and value of mid-market private equity-backed transactions in the North West increased during the first half of 2012, and the number of deals worth between £5m and £150m grew from seven in the region the year before to 11.

Total value of transactions also increased by over 30% to £364.1m, compared to £274.7m during the first six months of 2011.

Carl Wormald, Director and head of LDC in the North West, said: “These positive figures highlight the strength of opportunity that exists for private equity firms here in the North West, given the region’s high calibre businesses and management teams, and the tenacity and professionalism of its dealmaking community.

“The results also coincide with what has been a record year to date for LDC in the region. We’ve invested over £100 million in five North West businesses so far in 2012, backed portfolio companies to execute four acquisitions and aim to maintain this momentum through continuing our relentless origination efforts and by expanding our team of Investment Executives.

“While access to debt to support buyouts remains challenging and varying pricing expectations are still a hurdle to overcome, activity during the first half of the year and the underlying quality of corporates bode well for future deal flow in the region.”

Over the period, LDC were involved in the MBO of Airline Services Limited, investment in internet service provider Metronet, the MBO of Bifold Group.

This was posted in Bdaily's Members' News section by Tom Keighley .