Private Equity Value Report shows sector’s positive impact in Yorkshire

Yorkshire private equity-backed businesses experienced average earnings before interest, taxes, depreciation and amortisation growth of 49 per cent over the latest three-year period, underlining the positive impact that the sector is having on the region’s economy, according to a new report.

The inaugural Private Equity Value Report from Real Deals, developed in association with BDO, found that the region performed slightly below the UK average.

Nationally, growing private equity (PE) portfolio companies achieved an average EBITDA increase of 58.9 per cent over the same three-year period while average revenues grew by 22.2 per cent.

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Nick Millward, transactions tax director at BDO. Picture: Jay CainNick Millward, transactions tax director at BDO. Picture: Jay Cain
Nick Millward, transactions tax director at BDO. Picture: Jay Cain

Accountancy and business advisory firm BDO commissioned the research to understand the impact that private equity investment is having on the growth of the regional economy. The data was drawn from the most recent three years of accounts filed with Companies House.

The fastest growing 25 businesses in Yorkshire, which included Vision for Education, Operam Education Group and Aston Barclay, saw average EBITDA growth of 67 per cent over three years.

Nick Millward, transactions tax director at BDO, said: “Despite the challenges of the past three years, this research demonstrates PE-backed businesses are a resilient and dynamic segment of the region’s economy.”

The fastest-growing private equity-backed businesses in the region created an additional 255 jobs between 2020 and 2022.

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