Buyout market defies the economic gloom

Buyout activity in the lower mid-market sector in the South East remains buoyant despite the current economic gloom, according to Sussex-based EMC Corporate Finance.

The firm is currently handling eight company disposals in the £2m-£50m sector and has four acquisition briefs in the £1m-£10m range. It has also recently completed on three other transactions of between £2m and £20m in the insurance, logistics and education sectors.

Nik Askaroff, EMC’s CEO, said: “The year has certainly started strongly, although some of this was due to a backlog from a slow final quarter in 2011.

“Corporates with cash are looking to buy assets whilst prices are still relatively soft, with private equity-backed companies being particularly active as they aggressively pursue buy-and-build strategies.

“Prices have come back for the right businesses and buyers are certainly out there. But you need to know who you’re dealing with and be prepared to do much more seller due diligence to ensure that you are not wasting your time.”

EMC, which has four offices in Sussex, is one of the region’s leading corporate finance and business management boutiques having completed more than 250 sales and acquisitions, raised more than £800m of debt and equity finance and completed well over 1,000 corporate strategic reviews since its formation in 1989.

The firm pioneered the concept of the ‘mobile boardroom’, a multi-disciplined taskforce of senior professionals who provide hands-on support and advice to businesses on a short or long-term basis.

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8 May 2012