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The first two months of the year have already involved a number of high profile deals announced by Midlands-based advisers and based on the deal flow we have at the time of writing, I am confident that 2011 will continue to bring many more.

A common theme of the recent deals we have been involved in at Catalyst is that all the businesses concerned are UK leaders in what they do.

Admittedly, there will be larger players operating within each of the sectors, but our clients have chosen to focus on a niche and have done it incredibly well - for example Aston Carter, a phenomenally well-run executive search business focused on the financial services market, and CitySprint, which has established itself as the UK’s largest same day courier and logistics provider.

A proven ability to deliver by focusing on a niche is a common factor for SMEs that are able to attract funding, grow profits and ultimately maximise shareholder value.

In my experience, a resolute management team will understand its defined niche and know how to compete against larger broader propositions, enabling them to gain a distinct advantage within their marketplace.

In our fast moving world, the skill and drive of management teams who have adopted this strategy allows these businesses to be more agile and with greater ability to adapt to changing circumstances than the large more institutional international corporates. I have long believed that market share moves far more significantly in recessions than in boom years, as less able businesses are protected in the latter.

Once again, the example of Aston Carter shows how strong management, united under a common vision to be the supplier of choice within its niche market, has paid dividends with its recent sale to leading US corporate Allegis Inc.

Despite a significant downturn in the recruitment sector, which saw many larger competitors show large falls in profits, Aston Carter more than doubled its revenues in the same period. This was achieved by focusing on their key markets, expanding internationally with new and existing clients into continental Europe and the Far East and continuing to relentlessly deliver excellent service, meaning that existing customers were given no excuse to seek alternatives.

If there is one thing the last two years should have taught shareholders, management teams and advisers, it is that you need to have a strong focus on your core USPs and know how to articulate these vis-a-vis your competitors. If you cannot do this, how on earth do you expect others, namely employees and potentially investors, to back you and support your vision?

Businesses that clearly have focus will continue to have a wide range of funding and growth options available, despite the fluctuations of the banking market and concerns over economic conditions this year.

Andy Currie is managing partner of Catalyst Corporate Finance. He won the Corporate Finance Adviser of the Year category in our Midlands Dealmakers Awards 2010. Catalyst was also the winner of the Corporate Finance Advisory Team of the Year award.