The corporate finance team at accountancy and business advisory firm BDO LLP in Birmingham has completed eight deals in eight weeks, and says the outlook for the year ahead looks promising as deal volumes and values are predicted to rise even further in 2014.
Led by partners Roger Buckley, John Stephan, Graham Elsworth and Malcolm Cook, the Corporate Finance team in BDO’s Birmingham office has advised on international acquisitions, trade sales and fundraisings across a range of sectors.
The rapid flow of deals sees the firm on track to retain its number one spot as the most active financial adviser as revealed in the H1 Experian Corpfin league tables.
As well as seeing an increase in deal activity, the firm says that vendors are realising good prices for their businesses. According to BDO’s latest research, the Private Company Price Index (PCPI), the prices paid by private companies is at a five year high. This is likely to prompt some owners to return to exit strategies which have been put on hold during the recession.
The M&A team has advised the owners of Doodson Broking Group on its sale to US-based Integro Insurance Brokers. The niche insurance broker specialises in live entertainment contingency risk for global touring artists and has a client list consisting of the music industry elite, including Beyonce, Lady Gaga, Muse and Radiohead.
Other deals include the acquisition of Custom Interconnect by Midlands-based Wright Industries and the sale of Dalian Mayerton Refractories in China by its Midlands-based owner to Brazilian group Magnesita Refractorios, as well as the purchase of geological consultancy Ichron by RPS Group and Care Monitoring & Management’s acquisition of Panztel.
In addition the team has provided regulatory advice for a listed company on a publishing deal and assisted two Venture Capital Trusts (VCTs) in seeking to raise up to £20m each as buyers prepare for a busy 2014.
Roger Buckley, corporate finance partner at BDO in Birmingham, said: “The Midlands deals market is a busy one. Activity has risen steadily throughout the year and we expect this to continue in 2014. In reality, the market has more demand than supply at the moment which is creating excellent opportunities for sellers.”
BDO partner John Stephan added: “Many of the deals we’re involved with have an international aspect. The UK is seen by investors as a stronger growth market than some of its competitors, with private company growth at the heart of the recovery. This is driving up attractiveness to both PE and trade buyers, a significant proportion of which are coming from overseas.”
