DELOITTE'S mergers and acquisitions tax team in the North East has reported a spike in the number of deals done in the past six months.
In the last six months alone, the team has handled more than 60 transactions, with particularly high levels of activity in the manufacturing and healthcare sectors. Deals have included the acquisitions of distressed businesses, refinancings, debt for equity swaps, overseas expansion and resetting of management incentives.
Stuart Cottee, head of tax at Deloitte in the North East said: “The market is good for M&A transactions – companies and other investors are sitting on historically high levels of cash reserves and have solid balance sheets while interest rates continue to be low.
“In conditions where even modest organic growth is hard to achieve, the corporate sector must consider alternative growth opportunities, otherwise they risk squandering their hard-won positions. Transactions of any kind can have complex tax implications for a business and it remains as essential as ever to remain fully compliant.