Deals Review – August 2016

In partnership with the Business Desk, several of our experts will comment on significant deals every month. For August, head of corporate James Fawcett looks at the impact of Brexit in the corporate sector.

Following the initial shock caused by the UK’s decision to leave the European Union, for us in the Gordons corporate team it feels as though activity levels have largely returned to the level seen before the referendum.

Since the result was announced in late June and Brexit became a reality, we have exchanged or completed five corporate transactions, including the £2.75m investment from specialist private equity fund manager YFM Equity Partners to support the growth of communications platform Sipsynergy.

Although a small number of clients have indicated that the ongoing uncertainty over Brexit may impact their investment plans, for the majority of clients it is business as usual and many remain cautiously optimistic.

Some businesses appear to be talking down their prospects in the wake of the referendum, but many are remaining unfazed, and are announcing positive results as well as optimistic statements.

One example is Doncaster-based manufacturer Polypipe, which followed a strong 2015 by posting a record performance in the first half of 2016, seeing revenue rise by 31 per cent and pre-tax profit increase by 29 per cent.

Despite it being the traditionally quiet summer holiday season, we have a strong pipeline of regional transactions and have recruited accordingly to bolster our team.

The true impact of the Brexit vote will not be understood or felt for some time but, with many quality businesses in Yorkshire and both banks and private equity investors continuing to provide the support and appropriate funding options for those businesses, there are still reasons to be optimistic.