£5.8bn invested in deals
300 deals took place between SMEs in Yorkshire and the Humber and corporates over the last four years, known to have exceeded £5.8bn, according to economic data from the national law firm, Bond Dickinson.
The types of Yorkshire SMEs engaging in deals with corporates are led by manufacturing, financial services, retail and technology. 72% of deals since April 2013 were mergers and acquisitions while 27% were minority stake purchases; less than 1% were joint ventures.
Taking into account the number of SMEs in each region in 2016*, Yorkshire and the Humber ranked fifth out of 12 UK regions in terms of deals between SMEs and corporates.
Across all regions, between 2013/14 and 2016/17, large organisations are known to have invested over £102bn in 5,447 deals with UK SMEs. This exceeds the £62bn corporates invested in UK research and development between 2013 and 2016**, and represents more than a seventh of the £683bn total UK business investment.
Based on analysis of four tax years of deal data, the findings are detailed in Close Encounters: The power of collaborative innovation. The report explores deals between large organisations and UK SMEs, including mergers and acquisitions, minority stake purchases and joint ventures from April 2013 to April 2017.
Mark Owen, Partner and Head of Bond Dickinson’s Leeds Office, comments:
“Big businesses have long sought the nimble capabilities of startups, so its little surprise collaboration with SMEs has become a key innovation strategy for leading companies around the world.
“The value created from these deals between large corporates and Yorkshire-based SMEs goes beyond the individual firms to benefit the wider economy. There is an opportunity, particularly in our thriving financial services sector, to do more to harness the power of these value-creating partnerships.
“Financial services rank highly in the number of deals between regional SMEs and corporates reflects the rapid growth of the sector in Yorkshire, with Leeds now home to the UK’s second largest banking hub after London.”