David Pattison, senior analyst at Plimsoll Publishing Ltd, says: "Any company that is not increasing sales is always going to struggle as rising costs restrict margins. For these 26 companies, 'selling up' would represent a viable solution to their problems. By absorbing costs and eliminating inefficiencies, new owners could turn these struggling companies around. It's a win-win situation. Potential acquirers should be rubbing their hands together at the chance of buying one of these companies. Firstly, it is likely that any one of them could be bought cheaply. Secondly, acquiring companies can expect high returns. By reducing costs, new owners will be able to add the extra sales to their gross margin."
Copies of the 440-page analysis can be obtained for £305 by calling Plimsoll on 01642 626400 or by visiting the web address below. Readers of L&SI and LSIOnline wishing to place an order can receive a 5% discount.
(Lee Baldock)
