We have maintained a cautious optimism for the past 18 months, believing that business in the North West would prove to be more resilient and innovative than much of the media gave it credit for.
We have maintained a cautious optimism
for the past 18 months, believing that
business in the North West would prove
to be more resilient and innovative than much of the
media gave it credit for.
I have a theory that the reason the economy wobbled, but didn’t fall further than it did, was partly due to government intervention in the banking crisis, but the slow recovery and the steadfast survival of companies was due to the inventiveness of businesses and their staff. Businesses now have much better access to information than ever before; in cash flow, debtor days and in performance management metrics. That information has enabled them to take action in the right places.
Add to that the sense of togetherness that many companies built through the good times. They were able to dip deep into a pool of goodwill to get staff to work harder and to do more with less. The current generation of management, many who learned their skills through peace time, have proved themselves to be able in times of war. These themes are aired in our discussion about managing in a recession on p78. But what problems lie ahead, what lessons have banks learned about risk?
Rupert Cornford’s excellent cover story on the auction to sell the Cheshire pet retailer Pets at Home seems like a throwback to another age. A retail business being sold to a private equity backer at a massive multiple? What fresh lunacy is this? Have they learned nothing? But in truth, they have. As we followed the twists and turns in the auction to sell the business, we’ve also seen a club of banks from around the North West churn through the numbers and believe they can work out how much they think the business is worth. It all comes down the performance of this particular business in this specialised part of the retail sector.
And what of the collapse of the latest process to sell Matalan? Did they even really, I mean really, want to sell it? Buyers came in with an offer, the owners named a price, the buyers couldn’t meet it. The sale of Pets at Home, like the sale of Belfastbased maritime business Survitec, is an important milestone in the road to recovery for the region’s beleaguered corporate bankers. The use of clubs in the sale process have helped buyers and sellers have a clearer view of what a business is worth.
Also in: March 2010
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Cover story - Pets at Home
As North West petcare retailer Pets at Home is sold for nearly £1bn, Rupert Cornford gets inside what could be the deal of the decade.
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Interview - Chris Morris
Is this a career-defining moment? Rupert Cornford meets the man at the helm of internet success Laterooms.com.