Private equity buyout activity in the West Midlands dropped in the first half of 2012 compared to the same period last year, according to a new report.
The national market was more resilient, with 103 transactions totalling £8 billion in the first six months, showing a 38 per cent increase on the £5.8 billion in the second half of 2011, according to the Centre for Management Buyout Research.
The West Midlands recorded just five deals, with a combined value of £165 million compared to nine deals worth £898 million in the first half of 2011.
Phil Griesbach, director at the Birmingham office of Equistone Partners Europe, said: “Although the West Midlands has performed less strongly than in the same period last year, the deal pipeline is looking pretty active and when combined with the availability of finance for transactions, we should see an increase. However, macro-economic uncertainties continue to make forecasting difficult.”
Nationally buyout activity declined in the second quarter of this year after a strong start, with 66 deals worth £5.4 billion in quarter one, reducing to 37 deals worth £2.6 billion in quarter two – the lowest quarterly value since the final quarter of 2009.
Mark Stanway, M&A director at Ernst & Young in Birmingham, said: “Although activity is showing signs of improvement, it is all relative, and there is still only a low volume of quality assets coming to market which is hindering activity in the UK.”
