Avison Young (AY) has reached an agreement on a recapitalisation deal which is intended to provide the “financial muscle” to drive expansion and strategic acquisitions, with the UK a key target for growth.
AY is set to unveil an accelerated growth strategy for the UK later this year
The recapitalisation deleverages AY’s balance sheet debt-to-EBITDA ratio and reduces the firm’s debt and preferred equity by nearly 70%, both historic lows for the company.
The firm’s existing financial partners have taken a “meaningful” common equity ownership position, with the equity group also containing the firm’s employees and financial partners. The transaction is expected to close in October.
According to the global real estate advisory firm, headquartered in Toronto, Canada, the “transformational” transaction, which builds on a successful recapitalisation in 2024, will position AY for its next phase of growth.
The update said the UK team had driven strong H1 2026 revenue growth, with performance tracking to match and exceed its full-year targets.
Building on that momentum and the appointment of George Roberts as president in May, the UK firm is finalising an accelerated growth strategy set to be unveiled later this year.
The business said the deal strengthened its financial foundation and provided additional liquidity for “growth, sustained profitability and long-term value”.
AY will engage in a disciplined strategy of organic expansion and target acquisitions, with the firm looking to expand into new sectors and markets with strong growth potential, as well as areas where it feels it can build upon its competitive advantages.
The firm said it had navigated a persistently uncertain economic environment in recent years, causing subdued market activity, and had enjoyed a significant recovery in H1 2026.
HMRC had filed a winding-up petition against several AY group companies, including AY UK, relating to an unpaid tax bill, but managed to settle the issue earlier this month.
Mark E Rose, chair and chief executive of AY, said: “We have strong ambitions for AY’s growth and today’s agreement marks an important milestone in helping us achieve them, building on the decisive actions we took two years ago during an unprecedented period of market disruption.
“With a strengthened balance sheet and enhanced liquidity, we now have the financial muscle to accelerate our growth strategy while maintaining our unwavering commitment to client services.
“I am confident that these factors, coupled with the revenue growth we are delivering as well as signs of a general improvement in market fundamentals, we are well positioned to continue to drive long-term growth in profitability and equity value creation for our shareholders and principals.”
In its latest accounts, for the full year 2024, the firm’s UK and European arm posted a pre-tax loss of £101.8m, mirroring a similar loss for 2023. AY recorded an £84.6m operating loss in 2024 and has cut its workspace team by around 300 over a two-year period following the restructuring of several departments.
