BUSINESS NEWS


BDO’s Harry Stoakes: ‘A huge supply of money has not found a home yet. That is


very good for business owners looking to sell’


‘Investors to target travel once sector has picked up’


BDO expert highlights PE appetite but banks won’t lend yet. Ian Taylor reports


Private equity (PE) investors remain keen on travel and have huge sums to invest, but it could take six months’ successful trading to free funds for mergers and acquisitions. That is according to Harry Stoakes,


partner at business advisory firm BDO, who told the Business Travel Association conference in Liverpool: “There are record amounts of PE funds uninvested – £500 billion in Europe and £2 trillion globally.” Stoakes said: “The economy is


not back to where it was yet, but job 56 30 SEPTEMBER 2021


vacancies are at a record level [and] UK deal activity has rebounded strongly. The recovery has been so much faster than after 2008-09 because of government money going into the system. “Overseas investment in the UK


has accelerated, but a huge supply of money has not found a home yet. That is very good for business owners looking to sell.” However, Stoakes added: “We


don’t expect deal volumes [in travel] to go back to the glory days of 2014-18


for a while. There is lower appetite among PE investors in business travel at the moment. PE looks forward and banks look back. Banks need to see six months’ trading activity in order to resume lending. Once they do, we’ll see deals.” He noted: “The deals that are


getting done are based on tech [because] business travel is a low-margin space. You’re constantly


Continued on page 54 travelweekly.co.uk


BUSINESSNEWS


PICTURES: Business Travel Association


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