Steps being taken to invigorate Manchester’s business community

STEPS are being taken to invigorate Manchester’s business community after the latest figures show the deals market is still suffering in the downturn.

Market analysis from pro·manchester, the city region’s financial and professional services organisation, shows Manchester-based advisors represented 15 deals in Q2 worth a combined total value of £241 million. This shows a 46 per cent decline in the volume and a 54 per cent slide in the value of deals since Q1.

Unsurprisingly, there has been a sharp decline in the number of deals in comparison with the previous quarter last year, with figures revealing a drop of 69 per cent in the volume of deals and 84 per cent in the value.

The drop can be attributed to the fact Manchester-based advisors were not involved in any large deals with a value of more than £1 billion.

Looking at the mid-market (£10 – £100 million), Manchester’s advisors represented just four transactions, a fall of 14 from the same quarter last year.

Deal volumes were also down in the small cap segment, with the value of the 11 deals falling by 45 per cent.

Robert Sheffrin, director of pro·manchester, said there are, however, reasons to remain optimistic.

He added: “The value of the mid-market has remained fairly constant over the past three quarters and has been well within the £200 - £300 million range."

“There is no denying deals are down on this time last year, but there are reasons to remain upbeat with new funding streams launched."

“The NWDA launched a £200 million support package last year, which includes a £15 million transitional venture Capital Loan Fund. This will help businesses in the region weather the economic storm.”

The Government’s Capital for Enterprise Fund will also provide £75 million of equity – made up of £50 million of Government funds and £25 million from Barclays, HSBC, Lloyds TSB and RBS.