The study, which analyses the UK’s largest 1327 companies, warns that a combination of stock piling cash, low interest rates and ageing directors has left these companies open for acquisition as the sector consolidates, evolves and starts to prosper again. Following the recent acquisition of Rotherham-based firm Pyronix, David Pattison, Plimsoll’s chief analyst, believes now may be the time for some in the market to acquire saying: “These businesses named as highly attractive takeover targets are showing classic acquisition criteria. They are all declining in financial strength, many have an aging board and some are still privately owned. Given the circumstances, it’s quite possible that perhaps some of the directors will be looking to retire or even consider a sale.
“With these findings in mind it will be no surprise that we will see more acquisition activity. Let’s also remember an acquisition should not be seen as a negative thing, it’s an opportunity for both the buyer and the seller – the buyers get to take on a new business and invest, the sellers get to belong to a new company and get a whole new future.”
As such, the new study includes a regional analysis whereby it states which area of the country has the most attractive acquisition prospects.
The new study contains a valuation, acquisition attractiveness score and overall financial rating for each company. It is designed to help anyone looking at buying or selling companies to understand the options open to them.