Current economic crisis offers opportunities to purchase

Industry analyst Plimsoll Publishing's latest report reveals the current UK economic climate presents opportunities for those looking to grow amid the financial failure of ailing forklift companies.

The study rates each of the UK's leading 483 forklift companies on their acquisition attractiveness. It found 57 companies are "ripe for the picking", based on a combined scoring system, incorporating overall financial strength, ownership, valuation and potential.

David Pattison, senior analyst at Plimsoll, says the current downturn is one of the biggest opportunities in a generation, "if you have the courage and the capital.

"The current market conditions present unprecedented opportunities to buy into a business that even a year ago would have been unaffordable.

"We know of at least 177 companies within the industry that have the cash to spend and could aid these 57 ailing businesses and ensure their survival."

The 57 companies identified are all privately owned but show a serious deterioration in financial performance.

Pattison says, given banks' reluctance to lend more, the companies are running out of time, money and options.

"We have indentified a group of 'wounded animals'," he says. "Many of these businesses have a long and distinguished history, yet their recent performance has deteriorated. By definition, these are classic acquisitions.

"Anyone looking to grow their own company through acquisition should be looking for businesses that are currently undervalued yet, with help, can be turned around."

Pattison points out that course of action will not be easy. "Many will need rapid and deep cost cutting to get them back on a firm financial footing."

Plimsoll predicts as many as 1,625 jobs could go over the next 12 to 24 months as the companies shrink to ensure their survival.