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Plenty of cash rich to
rescue the needy
July 20, 2009
Source: Plimsoll Publishing
Readers of Pro AV Buyers Guide are entitled to a £50
discount of this new special edition of the Plimsoll Industry
Analysis – Audio Visual Equipment. Call 44 01642 626400
for further details and quote reference PR/MI15.
1 in 5 companies in the UK Audio Visual
Equipment industry could change ownership as a result of the
current economic climate, claims a new study by leading financial
analysts Plimsoll. With a surprising number of “cash
rich” competitors waiting in the wings, the market could
be set for a prolonged period of consolidation.
David Pattison, author of the new Plimsoll Industry Analysis
– Audio Visual Equipment, explains, “I am sure any
director worth his salt would agree that, in the current climate,
there are simply too many companies chasing too little market.
With many directors eyeing the exit doors and highly leveraged
buyouts consigned to history for the time being, it really
is a buyers market out there for cash rich companies”
Pattison continues, “In the Plimsoll Industry Analysis
we have identified 85 companies that have a sizeable cash
reserve sat on their balance sheets that, due to record low
interest rates, is generating nothing. One company has a £80
million cash pot; a whopping 80% of turnover. These companies
are now in the position to buy up large chunks of market share
at rock bottom prices and make that money work for them. They
must be like kids in a sweet shop at the moment – all
those distressed competitors available at a fraction of their
true value”.
“The UK Audio Visual Equipment market is still widely
regarded as one of the UK’s most fragmented sectors.
In our report we analysed 380 companies with a turnover of
over £1 million per annum and have picked out 127 that
are primed to be taken over. Buying one of these businesses
represents a massive opportunity for someone to enhance their
share of the market. Either way, the market is set for a wave
of takeovers in the next months”.
The new Plimsoll Industry Analysis – Audio Visual Equipment
will tell you which companies are set to be buying and who
will be selling.
Readers of Pro AV Buyers Guide are entitled to a £50
discount of this new special edition of the Plimsoll Industry
Analysis – Audio Visual Equipment. Call 44 01642 626400
for further details and quote reference PR/MI15.
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