Despite economic worries, Midlands businesses seek growth funding - BDO

Despite the concerning contemporary economic climate, nearly half of medium-sized Midlands businesses intend to seek funding to fuel their growth in the next year.

This is according to the latest ‘Rethinking the Economy’ survey from accountancy and business advisory firm BDO, which states that, by the middle of 2023, 48 per cent of the region’s businesses plan on seeking investment. 40 per cent of these have fund raising plans in place for the next 12 to 18 months.

Roger Buckley, M&A partner at BDO in the Midlands, said: “Regional businesses are facing a plethora of challenges that keep on mounting in the face of high inflation and an impending recession.

“Despite this, there is still a clear appetite to seek and secure investment, as businesses look towards multiple sources of funding to meet strategic aims.

“With the investor market equally as ambitious in the region, eager to support entrepreneurial companies that wish to scale up at pace, we expect this level of interest by companies to have a positive effect on investment activity in the Midlands over the coming 12 to 18 months.”

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The survey, which looked at 500 mid-sized businesses, found that the two leading sources for this funding are debt finance (34 per cent) and bank loans (31 per cent). Private equity and crowdfunding are also under consideration by some firms.

In another encouraging finding, the BDO survey states that nearly a quarter of companies plan to expand internationally in the next year, with 19 per cent of those which already operate overseas intending to expand their presence.

Mr Buckley said: “Operating internationally brings with it a multitude of tax and regulatory considerations that can differ from one territory to the next.

“However, the financial rewards for establishing a strong footprint in complementary markets can be significant if planned and funded in the most appropriate way and Midlands businesses are clearly keen to capitalise on the opportunities this brings.”

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