KPMG in Yorkshire and North East advises on five deals since Brexit

Despite Brexit, there is still an appetite for M&A in the regional market as shown in the rate of deals done by KPMG’s M&A practice in Yorkshire and the North East in the weeks since the EU referendum.

The professional services firm has advised on five deals since 23 June across several different sectors, which include:

• The MBO at Belfield Furnishings, backed by NorthEdge Capital in Leeds
• The sale of six Living Care Pharmacies to The Hub
• The merger of Pharmacy2u with ChemistDirect.co.uk, backed by the Business Growth Fund
• The sale of North East Convenience Stores to James Hall, SPAR wholesaler
• The offer by AQA Education for DRS Data & Research Services plc

Christian Mayo, who leads KPMG’s M&A practice in Yorkshire, said: “The regional market has responded to Brexit in a pragmatic and analytical way. 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.”

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