Midlands business leaders confident over future of IPOs
More than two-thirds (67 per cent) of business leaders in the Midlands said they were “confident” that deal activity would continue to increase in 2011, according to a survey by PwC. However, the majority also said they were aware activity is unlikely to recover to the levels seen prior to the recent recession.
Nearly 60 per cent of business leaders surveyed believed that the most significant barrier to flotation activity in 2010 was the volatility of the stock market and concerns over the threat of a double dip recession.
According to corporate finance experts at PwC, the more confident outlook is an indication of increased certainty about the economy and better access to debt funding.
Matt Waddell, head of private equity at PricewaterhouseCoopers in the Midlands, said: “The bounce in private equity-backed deal making expected in the New Year reflects a return to more normal market conditions, together with pent-up demand from deals which could not be completed in 2009 and 2010.
“Whilst there is still a need to remain cautious over the state of the economy, as lender confidence continues to increase and access to finance improves, the upturn in deal activity over the last 12 months looks set to continue into 2011.”
