NI Business Deals Slowed Last Year

The value of business deals in Northern Ireland plummeted in 2023, down by nearly a half on the previous year. The most transactions took place in the manufacturing sector, but even in this sector there was a drop off in deals from the previous year.

Only 236 Transactions Recorded During 2023

Here is some data from last year, as copied from an article in the Belfast Telegraph. In the article it said that:

‘According to Experian’s review of mergers and acquisitions, the number of deals completed during the year saw a decline of 12%, with only 236 transactions recorded during 2023.

‘And although transaction volume remained fairly steady, at £442m the value of transactions was down by 49% on the previous year as interest rate uncertainty weighed on higher value transactions.

‘The report added that despite a subdued first half of the year, the number of deals picked up during the year as market conditions stabilised.

‘The £70m funding package secured by Radius Housing last year was the biggest transaction recorded during the year.’

Deals Up In The Hospitality Sector

The article went on to say that:

‘The second largest transaction was another green deal which saw Belfast-based charging infrastructure business Weeve receive a £50m equity investment from Octopus.

‘And the acquisition of the Forestside Shopping Centre by former KFC tycoon Michael Herbert for £42m was the third largest transaction of the year.

‘With deals up by 23% in Northern Ireland’s hospitality sector it recorded its busiest year yet for mergers and acquisitions.

‘The £40m deal which saw Belfast’s Hilton Hotel sell to international hotel business Pandox last summer, was one of the largest transaction for the sector and the fifth largest transaction of the year.

‘The acquisition of south Belfast’s Radisson Blu hotel for £15m by Cork hospitality group, Cliste Consultants, also contributed to the record year for the sector.

‘But it was the manufacturing sector that proved to be NI’s leading source of transactions with 60 deals completed during the year, despite a 21% year-on-year drop.

‘Private equity investment was also down during the year, with investors taking a cautious approach to capital deployment, said Experian.

‘Deals with a private equity component were down by nearly a third to only 51, representing only 22% of all completed deals.

‘Of the 57 firms that made investments during the year, seed capitalist specialist Techstart was the most active by deal volume.

‘And according to Experian, professional services firm Grant Thornton advised on more deals than any other firm during 2023.’