MBOs on the up in West Mids
Management buyout volumes and their values have risen year-on-year in the West Midlands, according to data published by the Centre for Management Buyout Research (CMBOR).
Fourteen deals worth a total of £1bn took place in the region over the nine months to September. This compares with seven deals valued at £416.9m at the same point last year, and 11 deals valued at £799.8m for the whole of 2010.
The region has bucked the national trend of falling numbers and values, according to the research which was sponsored by Ernst & Young and Barclays Private Equity.
Deal volume in the West Midlands for quarter three of 2011 totalled five, up from three in the previous quarter.
This compares to the national picture where the number of buyouts fell in the third quarter to 35 from 51 in Q1and 38 in Q2.
Nick Gillott, corporate finance director at Ernst & Young, said: "The slowdown in UK activity in both value and volume this quarter reflects the impact on business confidence of continuing market volatility.
"However, it is encouraging to see the Midlands’ market continue to perform, bucking the trend with a significant year-on-year uptick in the number of buyouts completed in the £25m to £100m value range - the heart of the Midlands buyout market."
