NEXT year will be a busy one for dealmakers, according to Ryecroft Glenton corporate finance director Carl Swansbury.
The company, which was formally established in April 2011, has advised on a number of corporate acquisitions, including assisting international IT consultancy firm E-Resourcing Ltd on its acquisition of Williams McKinley, and on disposals, such as the sale of Wild Recruitment to the national consolidator Berry Recruitment and Willsco to Boardwalk Investments.
Swansbury has also helped clients, including E-Resourcing, to secure the funding and bank facilities needed to fund acquisitions and the future development of their businesses.
He believes 2013 will be a challenging year, but said that there will be deals done in certain sectors as businesses continue to consolidate.
He said: “Legislative changes will drive many consolidations. For example, new regulations will come into force as a result of the retail distribution review (RDR) in 2013. It is said that half or more of major insurance ‘manufacturers’ are likely to disappear over the next five years as a result of RDR.
“The new regulations will affect many unqualified financial advisers, as they will not be able to operate unless they have certain qualifications.
“It has been forecast that a third of financial advisers will leave the profession by 2018 as a result of RDR.”
Ryecroft Glenton is advising some long-standing North East-based businesses which have been in family ownership for generations but are now looking for larger corporate partners to ensure the businesses have the abilities and resources to prosper.
Carl said: “We are likely to see more privately-owned companies coming to market in 2013 because they are not agile or robust enough as they are currently structured to thrive in an elongated economic downturn.”