The annual benchmarking data for The Corporate Finance Network, of which we are a member firm, has been published.
The key findings are:
1. For the second year running, like-for-like corporate finance fees have increased by 36% per firm on average, after a 19.9% increase last year across 200 deals led by 21 firms across The Corporate Finance Network.
2. Corporate finance service lines continue to support growing firms, as results show that members increased headcount on average by a further 8% on last year.
3. 80% of member firms are still experiencing increased demand for sell-side services, including exit planning advice and disposals.
4. Expected fees from the current pipeline as of the start of this year are already 98% of next year’s fee target.
Kirsty McGregor, Chairman of The Corporate Finance Network, commented, “In contrast to the mid-market and larger corporate finance deal sector, activity has continued to increase for our member accountancy firms who work in the owner-managed business market.
“Some business owners are showing signs of losing motivation to continue running their companies, as the past few years’ pressures in most sectors do not appear to be easing yet. Inevitably, they are now deciding to retire and approach our firms looking for advice about selling their company.
“In contrast, our firms also support growing companies who are seeking to purchase a business to grow more quickly or to mitigate weaknesses or threats and take advantage of opportunities.
“We provide our experts in accountancy practices with additional tools and resources to support their corporate finance activity so we can ensure it is market-leading in the SME market.
“We have also secured an exclusive contract to roll out the pilot for the Innovate UK Innovation Loans Financial Advice scheme, and those first pieces of work are now beginning with founders of highly innovative companies.”
Andrew Silk, Senior Executive at our Swansea office, commented, “We continue to remain very busy and would encourage any companies interested in using a business acquisition as a vehicle for growth or owners looking towards their exit to speak to us at the earliest opportunity; this allows us the time and space to formulate a strategic plan and to deliver the best advice and solution for your own circumstances.”