ACQUISITIONS of insolvent businesses in the North East have continued to fall in the first half of 2011, according to research by Experian Corpfin on behalf of the insolvency trade body R3.
The figures show that distressed deals now account for just one in 22 of all mergers and acquisitions, compared to one in six when activity peaked in 2009.
During the first half of 2011, just two out of a total of 45 acquisitions in the North East involved companies acquired out of administration or other formal insolvency procedures. This compares to 15 out of 131 acquisitions during 2010 and 21 out of 117 during 2009.
Linda Farish, North East regional chair, said: “Distressed acquisitions have become a key part of the deals landscape over the past three years. Investors have been taking the opportunity to acquire businesses and assets while values are low and we have seen the emergence of specialist turnaround investors.
“However in recent months there have been fewer bargains and many investors are struggling to acquire credit to make a purchase. For those investors who have the money supply they should remain alert as we can expect to see a continued supply of decent investment opportunities in the run-up to recovery.”