Some of the UK’s most fertile regions are harbouring large numbers of struggling fresh produce businesses ripe for acquisition.
New research shows that almost a third of businesses in the East Midlands (27 per cent) - excluding the south East Midlands - and the South West (24 per cent) are exposed to takeover.
A new geographical study from industry analyst Plimsoll revealed that the Thames Valley, West Midlands and Yorkshire are all home to struggling businesses ready for a buy out.
In all, Plimsoll indicates that the market is fragmented with128 companies are in trouble, 327 others are powering ahead and are rated as ‘strong’ while a further 181 set to be taken over.
The report’s author David Pattison said: “Having rated 128 struggling companies as danger and given 327 others a strong rating, I am surprised at the gulf in performance in the market. Despite all other factors, success still comes down to how well a company is run.
“The market, in the current economic climate cannot support this many companies. There has to be further, more radical consolidation in the market. Strong companies will be buying up distressed competitors in the next 12 months.”
Plimsoll analysed the top 981 companies in the market and the following and also found some promising results. In the northern Home Counties 53 of 153 business are rated as ‘strong’ while in Essex 30 of the 71 businesses covered were similarly reviewed.
Some 18 per cent of Scottish firm analysed in the report were classed as ‘exposed to takeover’ while six of the 56 were ‘in danger’ and 19 ‘strong’.
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