Deal activity down, value up, says Experian
The number of mergers and acquisitions in the Midlands during the half of 2011 has fallen to 231 compared to 282 in the first half of 2010. However, the value of the deals rose by more than £4bn, according to data analyst Experian.
In the Midlands, 51 fewer deals were made in the first half of 2011 compared to the same period last year. But the value of deals has increased from £2.6bn in the first half of 2010 to £7.2bn in the first half of 2011.
Nationally, the number of mergers and acquisitions in the first half of 2011 fell by 15 per cent compared to 2010, with 1,978 deals being brokered in 2011, down from 2,316 in 2010.
But the value of deals brokered during the first six months of 2011 is up 7 per cent on 2010's figures, rising from £95.6bn to £101.8bn.
Wendy Smith, business development manager at Nottingham-based Experian Corpfin, said: "The first half of 2011 shows that there is still a degree of tentativeness in the market. This is further impacted by the fact that there are fewer business insolvencies to create opportunities and liquidity in the market and, to some extent, the fact that vendors still have high expectations on price.
"Nonetheless, we are in a more optimistic place than we were in a year ago and, as increasing numbers of businesses begin to focus once again on strategic growth rather than cost-cutting, we would anticipate a small rise in deal volumes in the coming year."
