Articles
Midlands Business Insider Dealmakers guide
By Lloyds TSB Commercial Finance
It's fair to say that with the value of buyouts in the UK reaching £24.2billion last year, 2005 was overall exceptionally buoyant for the corporate finance sector.
Though deal value in the Midlands was down compared to 2004, the region still contributed significantly to this record-breaking figure, with Carlyle Private Equity's £230million buyout of Britax being an obvious highlight.
The regional professional community was heavily involved in this deal, but importantly, local skills are being brought to bear on a wide range of other UK and international transactions. Eversheds leading the £485million acquisition of frozen food giant Geest by Bakkavor is just one example of the strength in depth within our local advisory community.
Deal flow, particularly in the mid-market, has picked up from where it was 12-18 months ago. Despite some high profile private equity houses leaving the region, the Midlands continues to attract national and international investment. Specialist home grown corporate finance boutiques establishing themselves with increasing regularity is also an encouraging sign.
Venture capital is of course driving a lot of the deals, but reassuringly, there's activity across the deal range.
A diverse regional economy with a range of developing and established sectors is one reason for this. Food distribution and specialist engineering in particular, have been the subject of some major transactions over the last 12 months, and the signs are that this will continue.
Leisure has been a hot area for M&A work too. The £80million sale of SFI Group to the Laurel Pub Company and the £79million sale of Derby-based Heritage Pubs, are two such examples. Again, this sector remains buoyant and there's nothing to suggest that this will change in the near future.
Our team at Lloyds TSB Commercial Finance in the Midlands has been busy recently too. Strong relationships with the advisory community and a growing understanding amongst businesses about what asset based lending can achieve, is a key reason for this. Last year, we provided funding for 200 deals in the region and I'm pleased to say we're on course to exceed these figures in 2006, having already completed our 100th transaction.
