Equity markets are increasingly responsive to good deal opportunities, according to a transactions expert.
And David Preston of Mazars’ transaction services team said he was confident the outlook remained favourable despite some reports to the contrary.
He cited two recent regional deals in which Mazars, the international accountants and business advisers were involved – the AIM market IPO of AFH Financial Group and Alkane Energy’s acquisition of three power response companies.
“Our experience is that equity markets are active and supportive to the right type of business and will continue to be so once we move into September,” he said.
With £750 million of assets under management, Bromsgrove-based AFH Financial Group is one of the UK’s leading independent financial advisory and discretionary wealth management firms comprising 122 self-employed financial advisers and a further 141 employees.
The AFH IPO raised £2.9 million and followed a two year period on the ISDX Growth Market during which it made over 20 acquisitions. The move to AIM is partly to accelerate its acquisition strategy.
Alkane Energy, which has its headquarters at Edwinstowe in Nottinghamshire, is one of the UK’s fastest growing independent power generators. Its £12 million transaction followed the successful raising of £8 million of equity and not only enhances the group’s existing strong position in the power response market but also broadens its geographical presence in the South of England and Wales.
The acquisition involved Darent Power based in Kent, Leven Power of Redditch and Rhymney Power in Cardiff.
Mr Preston said: “Through these transactions, both AFH Financial Group and Alkane Energy have made significant statements of their growth intentions.
“Despite recent sentiment to the contrary, it is pleasing to see equity markets being supportive of their ambition.”