Latest News | 13 September 2021
More firms turning to private equity investors to support growth
Research by BDO has found that over a quarter of medium-sized firms in the region are actively looking for private equity investment to cover costs and support future growth.
The survey, called Rethinking the Economy, found that out of 500 companies, 26% said that they were actively looking for an investor.
Meanwhile, 48% said they had already secured private equity funding since the onset of the Covid-19 pandemic.
The research found that the biggest reason for seeking external investment was to cover immediate costs (37%), followed by funding for organic growth opportunities (32%).
Almost a third of businesses admitted the benefit of private equity investment was the ability to move into new markets.
Andrew Mair, business assurance partner at BDO in the Midlands, said: “From a private equity perspective, the UK is very much 'open for business' at the moment, with investments at record levels during the first six months of 2021.
“Growing investor appetite, coupled with substantial available funds, provides an attractive proposition for Midlands companies actively looking to scale-up quickly in the wake of the coronavirus pandemic.
“This type of investment will allow ambitious Midlands businesses to develop new products and services, expand through mergers and acquisitions and strengthen their workforce at pace, as the regional economy recovers post-pandemic.
“There are still considerable challenges that exist for Midlands companies in making the transition from recovery to growth.
“However, with 67% of mid-market businesses stating that now in the right time to invest, set against a growing appetite from private equity firms to invest in the region, there is clear momentum in the market as we push towards recovery in the coming months.”
