As part of NPS’s vision to provide our followers with insights into the Nottingham Professional Services sector we are publishing a series of blogs by our committee members. Chris Taylor, Partner at Smith Cooper, provides his overview of the Nottingham/East Midlands Corporate Deals market.
The Nottingham / East Midlands corporate deals market is showing signs of solid growth. The recovery in 2014 was somewhat patchy but 2015 is set to be much more consistent.
Particularly strong are sales of owner-managed businesses, ending the often long wait for retirement-minded owners, across all sectors of the economy. Owners are now able to find buyers from everywhere except Europe where the domestic economic problems mean appetite continues to be suppressed.
The bad news is that business valuations remain low compared with historic levels, unless the sector is able to attract a buyer with a high rating, typically businesses in the IT and technology arena. Good buyers can raise debt at the lowest-ever rates, but remain cautious about the prices they are willing to pay vendors. Perhaps they recall errors of the past when highly inflated valuations helped create the worst recession on record.
If you want to find out more please contact us on ltaylor@blusource.co.uk.