Accounting firms and restructuring experts, including KPMG, are predicting a surge in small to medium sized companies falling into administration as a result of the knock-on effect following government spending cuts.
What is expected to happen is that the government will set up centralised procurement teams that will adopt a supermarket-style buying approach. This will undoubtedly favour larger suppliers who have the capacity for larger orders and the ability to shave prices down. These larger firms will see benefit in merging with each other or buying up smaller, specialist companies. Consolidation is inevitable.
The warning is plain for smaller companies who have government contracts or who subcontract to firms with public sector contracts: start putting cash away, cut your costs and look to expand your customer base. According to KPMG, at most risk are companies in the property and business support sectors. If there is a discretionary element to the demand for a firm’s products or services, then particular care should be taken.
According to R3, the insolvency trade body, a huge 30 per cent of small businesses say they are either ‘reliant’ or ‘fairly reliant’ on government contracts. 10 per cent of small businesses are worried that they may actually fall into in an insolvent situation if they were to lose their public sector contracts. R3 predict that the latest wave of government spending cuts will put nearly 150,000 small businesses in grave risk of insolvency. 
This esteemed business presents a unique opportunity for acquisition, boasting a long-standing reputation for manufacturing robust control valves serving various globally recognized industries. The company's stronghold is further cemented by lucrativ...
This is a rare opportunity to acquire a British OEM with a prestigious global customer base, supplying top-tier automotive, military, and motorsport sectors. The group boasts an impressive range of high-quality winches and bespoke engineering service...
A respected and well-established exhibition management business is available, known for its quality services and consistent performance.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.