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Investors set to target manufacturing sector
30 November 2010
Investors set to target manufacturing sector for investment, corporate lawyer tells manufacturers
- “Time for manufacturers to make their companies investment-ready”, says lawyer
Manufacturers in South Yorkshire are set to become the focus of investors looking to fund new types of business now that the service industries are failing to deliver returns, says Andrea Cropley, partner at the Sheffield office of national law firm Nabarro. But she also warns that manufacturers have to make their businesses ‘fit for funds’ to attract that investment.
Nabarro is planning to bring investors to the region in a series of ‘meet the manufacturer’ tours.
“This should be very good news for SMEs and for family-owned companies that need funds to expand, to open up new markets or to develop new products,” says Cropley.
“Investors are telling us that South Yorkshire, and manufacturing in particular, looks a much better prospect, but they have asked us to work with manufacturers to ensure they have everything in place that will demonstrate that their technology and products really do offer a good return on investment.
“The current economic climate provides an excellent opportunity to attract the interest and funds of some of the UK’s leading investors, but we have to do a lot of work to make sure local businesses are ready to push themselves forward in a way that investors will understand and will be excited by. It’s time for manufacturers to make their companies investment-ready.
“Part of the issue is that family-owned businesses might be reluctant to allow an investor to sit on the board, seeing this as a surrender of control, but investment decisions are often made on the strength of the management team and the investor is reliant on their continued management of the business. They rarely want to take control, just to advise.”
Speaking at a meeting of some of the region’s leading manufacturers at Nabarro’s offices as part of the firm’s headline sponsorship of the Global Manufacturing Festival: Sheffield, Cropley also said that local manufacturers have to work hard to attract the right funders and to help investors understand that the region’s manufacturing businesses can deliver worthwhile returns on investment.
Manufacturers must become ‘technology developers’ to attract funds
“Nabarro has been in discussion with some of the country’s leading investors and they have made it clear that their love affair with the service sector is dead and that there is now an interest in manufacturing which could become a main focus of their efforts,” says Andrea Cropley.
“However, manufacturers have some way to go before they really speak investors’ language and they must demonstrate how their technologies are relevant to the 21st century investment market and that their business models can deliver a proper return on investment. This means that manufacturers have to repackage themselves as offering technology that is both exciting and profitable.
“There is a lack of understanding amongst the investment community as to the opportunities available in this region and we are addressing this by bringing manufacturers and investors together.
“We are working with local manufacturers with a view to putting together more ‘investor-friendly’ business models so those seeking funds for expansion or for new projects can tap into the newly-interested investor marketplace.”
For more information contact:
Andrea Cropley
Nabarro LLP
T +44 (0)114 279 4157
a.cropley@nabarro.com
