Yorkshire businesses seek private equity funding in growth push

October 2021



Terry Jones, Tax Partner


Nearly a quarter of Yorkshire businesses are looking for private equity investment, in a bid to achieve post-pandemic growth.

23% of Yorkshire & North East businesses are actively looking for an investor with more than half having already secured private equity funding since the onset of COVID-19.

Our latest research shows that the biggest driver for seeking external investment is the ability to develop new products and services, closely followed by funding for organic growth opportunities. Whilst nearly a third of Yorkshire businesses have admitted the benefit of private equity investment was expansion through M&A.

From a private equity perspective, the UK is very much ‘for sale’ at the moment, with PE buy-outs at record levels during the first six months of 2021.

Growing investor appetite, coupled with a substantial investment pot, means any pent-up demand from regional companies is likely to be satisfied by an injection of private equity funding, as businesses look to scale-up quickly in the wake of the coronavirus pandemic.

This type of investment will allow ambitious Yorkshire businesses to move into new markets, balance any outstanding debt, and strengthen their workforce at pace, as the regional economy aims to recover post-pandemic.

There are still considerable challenges that exist for Yorkshire companies in making the transition from recovery to growth. However, with 77% of mid-market businesses stating that now in the right time to invest - set against a growing appetite from private equity firms to invest in the region - there is clear momentum in the market as we push towards recovery in the coming months. As such, we anticipate a further influx of private equity capital into Yorkshire in the next 12 months across key sectors.

For more information on how we can support businesses considering private equity investment opportunities please visit the national BDO website or email me directly at [email protected] if you have any queries you would like to discuss.

 

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