Corporate Finance

PKF Francis Clark welcomes ‘ongoing surge’ in deals

The group now expects deal volumes to remain strong following the Budget announcement last week

PKF Francis Clark has reported an ongoing surge in deals, with 22 transactions completing last week alone, with more deals reportedly set in the pipeline. 

The firm has recently advised on 12 acquisitions, two management buy-outs and six company sales, and has raised development capital for two more businesses. Several other transactions are due to complete “imminently”, according to the group.

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Notable recent deals include the sale of RGB Building Supplies to Grant and Stone Group, as well as three acquisitions for Global Risk Partners.

The firm notes that deal volumes started rising in the autumn and reached a peak in the run-up to the recent Budget, adding that activity levels are expected to “remain strong”.

Andrew Killick, head of corporate finance at the accountancy group, said: “It’s an extremely busy time, and interestingly, our current activity levels are driven by a combination of factors, not just a rush to get deals done before the Budget.

“While those selling businesses have naturally been eager to complete transactions before any potential increase in capital gains tax that might be announced by the chancellor, we’re also seeing a much wider range of activity in a variety of sectors.”

He added: “The big difference between now and previous economic downturns is the sheer volume of money available, especially from private equity, which has been behind many of these transactions. The enthusiasm of many entrepreneurs pursuing ‘buy and build’ and ‘growth’ strategies has also been in stark contrast to those sectors that sadly are still suffering deeply from the effects of lockdown.

“In the past, funding has been the problem, but this time businesses with growth ambitions have a range of alternative finance options, as well as private equity investors actively seeking opportunities. For this reason, we expect deal volumes to remain strong after the Budget.”

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