Member Article

North West M&A activity increases

The North West and South East now account for nearly 70% of all M&A activity in the lower mid-market as the gap with other regions quadruples in size.

Berg’s M&A Barometer, based on research by Experian, measures M&A activity within the £2m to £10m deal value bracket, which saw deal volumes fall from 96 in H1 2011 to 91 in H1 2012.

The North West increased its share of activity from 13% to 16%, as the region recorded 14 transactions in H1 2012, with deal values rising by £30m to £76m over the same period.

London and South East also strengthened its grip on the lower mid-market with the Capital now accounting for 53% of deals in the first half of 2012, up from 42% in H1 2011.

Stephen Foster, partner and head of corporate at Berg, said: “The lower mid-market is an essential part of the economy as SMEs play a significant role in economic growth and job creation.

“Deal making activity in the £2m to £10m bracket has been impacted by a fall inconfidence as a result of the on-going Eurozone crisis and poor economic data. Despite the stall in overall activity, the research indicates a clear polarisation in the market as the North West bucks the downward regional trend and joins London in increasing its market share for deals in the lower mid-market.

“The other English regions, with the exception of East Anglia, have seen falls in activity as corporates and investors are hindered by uncertainty and market volatility.”

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