DEALMAKERS have been working hard delivering deals that have attracted less overt publicity than in recent years, due in the main to PR lock outs, disguising the volume of deal activity in the market.

Underlying transaction activity has been strong driven by the ‘bounce’ created by the low levels of corporate activity witnessed in late 2008 and throughout 2009.

Sellers have come back to the market this year, mainly private equity firms turning portfolios, and private company vendors who had been exploring exits before the markets closed in 2008.

We also have a renewed level of private equity investment appetite driven by the low levels of investment activity in 2008 and 2009.

The lack of available debt funding continues to constrain valuations, but the private equity providers have reacted to this by structuring deals with more equity to enable transactions to proceed.

Finally, corporate buyers have also come back to the market with access to funds to make acquisitions, helping to create some equilibrium between buyers and sellers.

Looking at our own transactions in this context we acted for the Witherslack Group in early 2011. Witherslack is a leading national provider of specialist education and care for children and young people.

The business has been growing significantly, requiring additional equity to satisfy its growth plans. Working with the management team we succeeded in raising a significant equity and debt package from ISIS Equity Partners and RBS to assist the business fund its growth plans.

ISIS were chosen as preferred equity funder for the business based on their experience in the education and care markets.

While many businesses approach us seeking growth capital, there is also a steady supply of shareholders seeking exits as part of their succession planning.

In early September, we acted for Peter Quick on the sale of Quick Hydraulics Limited (QHL).

With the increased availability of equity and debt for businesses that have growth potential and strong management teams in place BTG expects 2011 will end with a further flurry of transactions and there are positive signs that next year will show continued growth in transaction activity.

:: Shawn Bone, partner BTG Corporate Finance, Newcastle