Private Sector confidence returning to Greater Manchester

A report published today suggests that levels of investment and investor confidence in Greater Manchester have begun to grow over the last year at a relatively strong rate after the rapid decline associated with the 2008/09 financial crisis.

The paper, which focuses on mergers and acquisitions (M&A) and corporate finance activity in Greater Manchester, indicates that over the last decade Manchester has experienced consistently higher levels of M&A activity compared to similar UK city regions.

The report also highlights confidence in deal activity appears to be returning with three consecutive quarters of growth from the final quarter of 2009.

Although the majority of businesses bidding to invest in Manchester companies have originated locally, a significant amount of deal activity has also stemmed from London and the South East – a reflection of the growing strength of Greater Manchester’s business base.

Internationally, the paper highlights the importance of the USA and Europe in terms of cross-border deals, with 39% of deals originating from the USA and 44% from Europe, whilst recognising the emerging economies (particularly Brazil, Russia, India and China) will undoubtedly be an increasingly important source of future investment.

Alex Cole, Senior Economic Analyst at New Economy, the paper’s author said “This research shows that there has been strong and growing investor confidence in Greater Manchester businesses over the last decade, especially in the City Region’s financial and professional services firms. The fact that this confidence appears to be returning bodes well for the strength of the Greater Manchester private sector.”

Steven Lindsay, Corporate Finance Partner from CLB Coopers said “It seems that activity is picking up and should continue to do so, even if not to pre-2008 levels. CLB Coopers has advised on six deals since July 2010, worth a total of £40m, and we have more deals expected to complete in early 2011 – which seems to fit with the findings of the paper. Hopefully the availability of funding and confidence levels for potential purchasers will continue to improve.”

Mergers and Acquisitions activity: Manchester City Region in focus (5311kb), is part of the New Economy Working Paper series and more information is available here.

ENDS

For press enquiries, please contact:

Trevor Evers
Tel: 0161 238 4542
Email: trevor.evers@marketingmanchester.com

Notes to Editors:

• New Economy Working Paper “Mergers and Acquisitions activity: Manchester City Region in Focus” is to be launched on Wednesday, 15th December.

• The Working Paper analyses mergers and acquisitions (M&A) and corporate finance activity in the Manchester City Region over the last decade.
• New Economy Working Papers are designed both to produce robust pieces of analysis that stimulate the long-term sustainable economic growth of the Manchester city region and to act as a vehicle for economic development professionals to further their personal development. Papers are intended to invigorate intellectual and challenging debate on the key economic issues and ideas of the time.

• Overall responsibility for developing New Economy Working Papers lies with an independent Editorial Board

• The views expressed in the New Economy Working Paper ”Mergers and Acquisitions Activity: Manchester City Region in Focus” are those of the author, Alex Cole, alone and do not necessarily reflect the views or the policy of members of the New Economy Working Papers Editorial Board or the Commission for the New Economy.