Private equity transactions are likely to play a "significant role" in the recovery of the North West deals market over the next 12 months, according to DSG Chartered Accountants and YFM.
The pair believe that historical downturns, such as those experienced in 2008, could provide an indication of the potential outcomes of the next two of years as businesses navigate through the impacts of Covid-19.
Experian MarketiQ data shows that North West private equity dealmaking saw a 58 per cent drop from 2008 to 2009, with deal volumes not returning to pre-recession levels until 2014.
In contrast, DSG and YFM suggest the current economic crisis offers a "unique opportunity for private equity buyers" due to a surplus of dry powder among investors.
Both also believe that the post-Covid environment represents a chance for companies that are already backed by private equity to pursue a buy and build strategy.
Iain White, partner at DSG Chartered Accountants, said: "While the 2008 crisis was sector agnostic, with few businesses emerging unscathed, the 2020 situation is very different – there will be clear winners and losers.
"With trade buyers likely to be focussing on restoring their own houses to order, in the short to medium term, businesses in the North West could consider private equity as a viable option, either to supercharge growth or achieve a full or partial exit.
"While we expect that private equity transactions will take centre stage in the North West deals market, it could also be a trend seen nationally over the coming months."
Andy Thomas, partner at YFM, which specialises early-stage and late-stage investments, added: "Striking the right deal with the right private equity firm could provide business owners with both an opportunity to take cash off the table now and an investment partner that could help unlock future value.
"Having said that, it is important that owners get advice at the earliest possible stage, to help them understand the challenges they are facing and their prospects for future growth, either organically or through acquisition.
"An adviser will be crucial to finding that ideal partner to maximise the value of the business."