by David Jones

More bosses are putting their companies up for sale because of the tough economic climate, according to a Kent corporate finance consultants.

EMC, which has five offices across Kent and Sussex, including one in Maidstone, is reporting a “sizeable upturn” in mergers and acquisitions activity over the last quarter.

Chief executive Nik Askaroff said: “We have seen a marked increase in the number of owners wanting to understand the value of their businesses and the exit options open to them.

“We currently have 14 sales briefs amounting to more than £150m in potential value, which is our highest level of activity for three years.

"Add these to the six active acquisition mandates on which we have instructions and it means we are certainly seeing our busiest period for some time.”

EMC’s experience mirrors the latest report by Experian, the global information services company, which shows a 29% year-on-year increase in the total value of UK mergers, acquisitions, flotations, rights issues and placements during the first six months of 2012.

The report highlights a growing trend for foreign firms to show interest in UK businesses. Sixteen of the 24 largest deals in the first half of the year involved the proposed acquisition of a UK company by overseas investors.

Mr Askaroff added: “Business owners are becoming much more realistic about value and accepting of the fact that organic growth is going to be tough for the foreseeable future.

"So acquisition becomes a realistic and possibly only option for many companies that want to see any real growth.

“This combination of sensible values and increased appetite, coupled with the large cash reserves on UK corporate balance sheets, should lead to even higher levels of activity in the coming months.”