North West PE buyouts lag national average
The North West's private equity buyout market has recorded its slowest period for more than two years during the third quarter, according to the latest figures from the Centre for Management Buyout Research.
The research, sponsored by Equistone Partners Europe, found that just four deals completed, worth £79.8m. On a national level, 49 deals have completed worth £3.5bn, at an average of £67.4m.
In the North West the average deal value stands at under £20m meaning the region is lagging behind the national average for both deal volume and value.
"After such a strong period for the North West, it was inevitable that the region would go through a lean spell at some point, particularly given the impact summer holidays have on completions," said Steve O’Hare, partner at Equistone Partners Europe in the North of England.
"It is clear that the economy is in a better state than previous years and there is a greater sense of confidence from management teams looking to buy and sell. Deal pipelines also remain strong and the consensus is that this third quarter lull will pick up on the run up to Christmas and into 2015."
The research found that Concept Life Sciences, a newly formed scientific laboratory and consultancy business based in Manchester, dominated the North West figures during the third quarter after it made three acquisitions worth almost 0m, backed by Equistone.
During the corresponding three months last year, both the value and volume were higher in the North West, with ten deals worth £187m. Despite this, the average deal value has improved in 2014.