RG Corporate Finance (RGCF) has maintained its position as one of the most active M&A advisory firms in the North East following what has been an extraordinary 12 months.
The ramifications of the pandemic ensured the financial calendar was turned on its head, with the normally quiet holiday month of August transformed into the busiest in RGCF’s ten-year history.
During the month of August 2021 alone we advised on seven significant transactions, including management buy outs, disposals, and strategic acquisitions – a trend that has continued since.
The gradual lifting of Covid restrictions, combined with a significant amount of liquidity in the market, was the catalyst for a torrent of M&A activity.
Many in business have displayed patience and agility since the first lockdown, having to accept business plans and growth strategies had to be put on ice. This past year saw the resurrection of those plans and strategies. This coincided with an availability of funding, a timely incentive for management teams to take control of their own destinies.
At the same time shareholders were motivated to sell to lock in capital gains tax rates, ahead of anticipated changes in the autumn budget – changes which failed to materialise, but that are still expected to emerge in time.
Businesses are also keen to make up for the periods of lost or stagnant growth by making bolt on acquisitions or accelerating organic growth, financed by private equity investment, debt funding or utilising balance sheet cash reserves.
