Deal activity in the Northeast has plunged by almost 40 per cent with values falling by a total of £77 million.
Deal activity in the Northeast has plunged by almost 40 per cent with values falling by a total of £77 million. Corporate finance analysts claim a shortage of bank funding is the main obstacle to deal-making, but deals backed by private funding are on the rise.
Iain Richardson, director in corporate finance at Tait Walker, the region’s biggest independent accountancy practice, notes: “There has been an increase in MBOs as many business owners prepare to take a more realistic price than previously.”
The Northeast corporate financier says debt financing can be “tricky” to obtain as banks can change their terms on a daily basis and are turning away from sectors, such as real estate.
Even though debt funding is subject to closer scrutiny, he claims, “a good business with a well-thought out business plan will still be able to secure funding.”