Tait Walker bucks the gloomy trend
Aug 13 2008 by Peter McCusker, The Journal
ONE of the biggest corporate teams in the North East has managed to shrug off the national slowdown in deal activity.
Tait Walker, which has offices in Newcastle, Stockton and Morpeth, successfully completed eight deals in April, May and June – the same as in the first quarter of 2008.
A recent survey showed management deals in the North East had fallen to their lowest level this century, but despite the gloom elsewhere and the ongoing problems in the credit markets Tait Walker recorded an impressive performance assisting vendors and purchasers with management buyouts, disposals and due diligence.
In the legal sector, Tait Walker advised Mincoffs and Jacksons, two established North East law firms, on how best to merge the practices as a combined entity. Partner Steve Plaskitt also provided advice on how the partnership will perform going forward, positioning it as a force to be reckoned with in the region’s legal arena.
Working closely with Alliance and Leicester, the team advised on the MBO of Yorkshire-based engineering business Sheppee International.
Other second-quarter deals included the MBI by David Franklin into North View Engineering of Darlington, the sale of haulage operator Phillips of Seahouses and the sale of a majority stake in Interclean Ltd, the Washington-based vehicle valeting company.
Tait Walker were lead advisers on the sale of North Tyneside-based plumbing, heating and electrical contractors Simpson and Gregg to entrepreneurs Duncan Syers and Chris Corkhill, and managing director Colin Reed who took over from Peter Gregg, son of one of the founders of the company.
Michael Smith, who heads up Tait Walker’s 10-strong corporate finance team, said: “This second quarter has been as busy as the first with 16 deals behind us at the halfway mark. Compared with the last two years, as we enter the summer months we are still experiencing a high level of activity in MBO/MBIs and sales opportunities and are bucking the trend.
“Without doubt some sectors are being affected more adversely than others. However, there are still investors looking to acquire businesses across a number of sectors.
“Also, as funding is not as easy as it used be, more emphasis is now placed on how the deal is structured. With the right advice, financial institutions are still willing to support acquisitions, MBOs and MBIs.”
A recent survey reported that management deals in the North East have almost dried up since the end of the last financial year and 2008 could see the least activity so far this century.
Research in the first half by the Centre for Management Buy-out Research, founded by Deloitte and Barclays Private Equity, reports 14 management buy-outs and buy-ins in the region, worth £27.5m.
