Despite a slow to recovery economy from the crash of 2008, over the past few years Britain has now become the second largest buyer of foreign businesses and companies throughout the world. We spoke with Charterhouse, an expert company in buyouts and private equity, about this latest trend and these are some of the points they told us.. An acquisition by Charterhouse Capital Partners LLP and other private equity firms of that nature, will always take into account the country the foreign firm is in and here are the reasons why.
Out of all the countries that the UK has initiated buyouts in, the United States is the largest country with the healthiest economy. It also is the country where most British companies have been known to be most active with buyouts of US firms. Another of the most popular places that British companies tend to buyout foreign firms is in India and Germany. Both of which have healthy trades and relationships with Britain.
Although these buyouts of foreign firms from British companies is a great plus for the British economy and British business, there is also something else that’s quite revealing. Britain itself has falling prey to overseas firms buying out there homegrown companies such as HP’s purchasing of Autonomy (Britain’s biggest software company) and Northumbrian water being sold to a USA counterpart.
Will this continue as the economy continues to grow? Maybe. But for now whilst the economy is still getting up from its standing 8 count, potential buyout firms abroad might look at the financial state of the country and decide otherwise. This probably won’t last though!