Review of 2024 and look ahead to 2025 for Yorkshire

As featured in Insider. 

How would you summarise 2024 in the Yorkshire region (specifically with regards to M&A and the opportunities for private equity)?

“There has been plenty of M&A activity in Yorkshire in 2024, despite a challenging macroeconomic environment. This demonstrates the impressive resilience of the region’s management teams, as well as its investor and advisor community.

“From an LDC perspective, our team completed two primary investments, which included Bullen Healthcare and our investment to support the management team behind Hull-based Pagabo Group, a market-leader in build-environment software and services. We then rounded off the year with our exit and reinvestment in national estate agency and lettings group Lomond, which has been on a transformational growth journey over the last six years – a real regional success story that first started when we backed Leeds-based Linley & Simpson in 2018 following an introduction by Harrogate-based advisors at TLP.

“We are pleased to have witnessed sustainable growth and investment across our portfolio. Hessle-headquartered Boston Energy moved into its new home in East Yorkshire on the back of the business’ continued expansion and Sheffield-based UniHomes picked up a host of awards for its market leading proposition, including being named as one of the UK’s fastest-growing technology businesses at the Northern Tech Awards 2024.

“Lastly, from a broader regional market perspective, Yorkshire continues to be an attractive hub for investment, attracting funders and advisors alike. You only had to look around the room at Yorkshire’s Dealmakers Awards – which saw a near record turnout this year – to see this reflected. As advisors continue to make investments in their regional teams, those that balance an on-the-ground regional presence with specialist M&A and / or sector experience will be in the strongest position to secure the best outcomes for the businesses they advise and support.”

How do you expect the market to develop next year – specifically with regards to the outlook for M&A?

“I am hopeful that we are entering 2025 with a more stable political and economic backdrop, which could support a rise in M&A activity in 2025.

“In terms of the sectors to watch, Yorkshire continues to build a reputation as a technology and digital services hotspot, with a particular hub in Leeds. Whilst the cluster of skills in South Yorkshire at the Advanced Manufacturing Research Centre make it an attractive centre for investment. We expect to see an increasing number of businesses investing in their own technology propositions as they work to secure a competitive edge and develop new products. Our portfolio companies BCIS and UniHomes are good examples of this.

What do you see as the key trends in 2025?

“Businesses with strong, growth-orientated management teams and a clear value proposition will continue to attract investment.

“We also expect to see a fresh focus from investors, customers and stakeholders on companies’ ability to measure, quantify and demonstrate social value, i.e. how they impact society. Our portfolio company Pagabo is a great example of a local business that’s doing this well – alongside its social value calculation software, Loop, it fully integrates social value into the procurement processes it offers all of its clients.

“In terms of M&A strategies, buy-and-build is likely to remain popular to create scale, expand geographic reach and diversify or augment offerings. National estate agency and lettings group Lomond is a great example of how this strategy can support growth – it has completed 65 acquisitions since it merged with Leeds-based Linley & Simpson in 2018.”