Page 18 - Survey 2020: The Star Business

18 THESTAR
www.thestar.co.uk Wednesday,January22,2020
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MONEY MATTERS
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Overall 2019 was a better year for deals
There were 178 disclosed transactions in 2019 with- in the Sheffield City Region compared to 160 in the previ- ous year, although deal value was £900m versus £1.2 billion.
Looking behind the head- line numbers and after elimi- nating deals that distorted the numbers - global deals with a local small presence - then overall 2019 was a better year for M&A activity in the region.
Significant deals includ- ed the £125m sale of MAM Software Group, a US head- quartered software business with operations in Barnsley, to Kerridge Commercial Sys- tems based in Berkshire and the £100m acquisition by Irish group nVent plc of Eldon Elec- trics, the Netherlands based electrical enclosures group
with operations in Rother- ham. Sheffield based R2C Online Holdings, a fleet man- agement software firm was acquired by FleetCor Tech- nologies Inc, a US based soft- ware group for £26m.
In addition to M&A deals, there were plenty of capital fund raising exercises during the year, Xeros Technologies, the revolutionary polymer bead washing machine busi- ness, raised £2m with institu- tional shareholders to fund growth, Wandisco with opera- tions in Sheffield & California raised £13.5m through a new share issue.
Once again overseas buy- ers and investors have contin- ued to play a significant part in the deal activity of the city region.
At Hart Shaw we have en- joyed and excellent year in- cluding the sale of DMR Seals to Diploma plc for £7.5m in Au- gust and the sale of privately- owned stockholder business to a large overseas headquar- tered business for £10m in December plus several fund- raising transactions. We have seen more emphasis on trade sales rather than MBO’s in the past year.
Interestingly, we have been involved in due diligence and financial forecasting exer- cises for banks with problem portfolio companies, where the banks have been looking to understand the reasons for their customers prob- lems with a view to support- ing them, rather than going the corporate recovery route.
When I wrote last year’s article it was on the eve of the Parliamentary vote on Mrs May’s Brexitdeal. Now, we have a new majority govern- ment focussed on doing the deed and therefore we await the impact it will have on the UK economy. Ironically, the markets have improved on the back of the certainty it is going to happen, despite the consensus that most business leaders believe Brexit will be harmful – no doubt the full im- pact, positive or negative will not be seen during 2020 as the politicians thrash out the de- tails behind the exit. My im- pression is that 2020 M&A activity will start off slowly, but momentum will build dur- ing the course of the year. Best wishes for the new decade!
Patrick Abel.