Confidence is growing on funding

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Bankers, corporate lawyers and private equity investors are becoming increasingly confident about funding and the prospects for mergers and acquisition in Yorkshire and the north east, according to accountants and business advisers Deloitte.

The firm’s annual Northern Private Equity Confidence Survey found that 95 per cent of respondents expected deal volumes to rise or remain at least at similar levels to 2010.

“This is a welcome signal of confidence in the markets as the flow of deal making activity last year showed a marked increase in deals completed with values over £50m in 2010 compared to the previous twelve months,” says Deloitte.

“Whilst the majority expected debt multiples to remain at similar levels to 2010, in a reversal of last year’s results, a larger proportion of bankers, when compared to private equity investors, expected to see more debt in deals this year.”

Despite some bankers’ increased confidence in the likely proportion of debt in deal structures, they remained more pessimistic about the rate of economic recovery.

Overall 70 per cent of all respondents expected a similar rate of recovery to last year. More than three quarters of the opportunities considered by respondents in 2010 were in privately owned and family businesses, subsidiaries and secondary buyouts.