Liverpool City Region businesses showing healthy appetite for investment

5th November 2018

Neil Sturmey, partner at Grant Thornton North West

Liverpool City Region businesses are adopting bolder external investment strategies than companies elsewhere in the UK.

According to a survey by Grant Thornton, North West businesses are showing more willingness to explore options such as venture capital funding, private equity backing and crowdsourcing.

When asked to prioritise the different parts of their investment strategy in the next 1-2 years, more than 75% said they would generate growth by using external financial investment, compared with 61% nationally.

Neil Sturmey, partner at Grant Thornton North West, said: “Fast growth companies are not just open to doing deals, but are more willing to take on external investment to reach their next stage.

“The strong interest shown here by North West businesses is a good indicator of the dynamism in our region and the willingness to really go for it.”

“While the availability of external finance from banks may be tight, there is still significant capital available from other forms of external funding.

“Private equity firms have significant levels of funds to invest. One of the challenges for companies is building a coherent business case on which to raise money.”

The findings come from a nationwide survey of 1,000 UK businesses with turnover between £10m to £1bn – including 82 based in the North West.

The most promising growth accelerator was considered to be partnerships, including improved supply chain links, developing more expansive networks, and international connections.

Some 45% of North West respondents identified this as key, above the national average of 37%.

 

5th November 2018

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