8 June 2016 | Herpreet Kaur Grewal
A study by market analyst Plimsoll Publishing highlights the areas where the UK’s largest and most attractive takeover targets in the contract cleaning sector are based.
The study, which analyses the UK’s largest 1,144 companies, warns that a combination of stockpiling cash, low interest rates and elderly directors has left these companies open to acquisition as the sector consolidates, evolves and begins to prosper again.
The ripest pickings are in the Home Counties, Thames Valley, North Wales. Yorkshire, Scotland, and the South-East.
It also shows that:
- 155 companies are in danger;
- 310 companies are ripe for takeover;
- 294 companies are making a loss; and
- 157 companies lose over a quarter of their value.
David Pattison, lead analyst at Plimsoll, said: “These businesses named as highly attractive takeover targets are showing classic acquisition criteria. They are all declining in financial strength, many have an ageing 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 been 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.”
The study includes a regional analysis that states which areas of the country contain the most attractive acquisition prospects.
The Plimsoll Acquisition Study into the contract cleaning & support industry costs £500+VAT, and provides an in-depth industry analysis of the leading players in the market. The report contains a valuation, acquisition attractiveness score and overall financial rating for each company.
Location – No of prospects
East Midlands –13
Essex – 12
North East – 9
North West / North Wales – 24
Northern Home Counties – 68
Northern Ireland – 6
Preston conurbation – 5
Scotland – 20
South East – 17
South Midlands – 15
South Wales – 4
South West – 17
Southern Home Counties – 35
Thames Valley – 26
West Midlands – 18
Yorkshire – 21