Deals have been rising (From Bournemouth Echo)

Deals have been rising

9:20am Wednesday 7th January 2009

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SOUTH west firms have maintained or even increased the number of business deals they concluded over the past six months, according to Deloitte, the business advisory firm.

The findings from the Deloitte Dealmaker’s Survey found that 60 per cent of respondents said their transaction volumes had either increased or remained broadly the same over the past six months, with only a slight fall to 58 per cent in the numbers forecasting the same pattern in the coming half-year.

Approaching half – 42 per cent – say they completed five or more deals in the previous half-year.

Martyn Gregory, corporate finance advisory partner at Deloitte said: “While the current economic climate presents a challenge for many businesses, this may in fact be the trigger point for many transactions in the next six months, for example in refinancing or acquisitions.

“Deal sizes will undoubtedly be under pressure, but certainly we see a significant opportunity, particularly for stronger companies on the acquisition trail.”

Seventy-eight per cent of dealmakers believe that due to the global economic crisis, deals will take longer to complete over the next six months.

“There is no doubt that the difficulties in obtaining bank funding for corporate finance transactions will increasingly have an effect on our market,” said Sarah Sturt, transaction services partner.

She added: “With a recession imminent, people are naturally cautious. It is not surprising if they take a ‘wait and see’ attitude, resulting in deals taking longer as the general economic environment becomes more challenging.”

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