Chances to acquire

Andrew Walker, chairman of the insolvency professionals' organisation, R3, in Yorkshire and partner at Irwin Mitchell.
Andrew Walker, chairman of the insolvency professionals' organisation, R3, in Yorkshire and partner at Irwin Mitchell.
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Acquisitions of insolvent businesses in Yorkshire fell in the second half of 2010, according to research carried out on behalf of the insolvency trade body R3 by Experian Corpfin.

However, they continue to account for a significant proportion of all mergers and acquisitions activity in the region. Eleven of the 120-plus deals completed in Yorkshire in the six months to the end of December involved companies in administration or subject to other formal insolvency procedures.

Andrew Walker, Yorkshire regional chairman of R3 and a partner at Irwin Mitchell, said: “Insolvent deals have been running at high levels since mid-2008, when the economic problems began to set in.

“The numbers peaked between mid-2009 and the middle of last year, and have since fallen to the levels of early 2009. The fall in distressed deals in the past six months may reflect the fact there have been fewer insolvencies, and therefore fewer distressed businesses coming on the market.

“However potential buyers should be aware there is still a window of opportunity to acquire businesses.”