Fewer, but richer, deals dominate Scottish market, PwC reports

BVWire–UKIssue #4-2
July 16, 2019

M&A valuations
mergers and acquisitions (M&A)

Total transactions in 2018 dropped 25% compared to the record-setting previous year, but pricing continues to increase, focusing on the top of the market. So says Jon Shelly, PwC’s head of corporate finance in Scotland. He cites a number of the biggest transactions last year:

  • FNZ to Canada-based investment group CDPQ;
  • Weir Group’s Flow Control Division to US-based First Reserve; and
  • Howden to KPS Capital Partners.

Shelly was quoted at a business leaders’ meeting regarding ‘the pressure for corporates to deliver growth together with the wall of capital that is out there.’ In this regard, he’s very much in agreement with most other UK analysts when he concludes that most organisations now need to accept the current uncertain business climate in the face of growth needs and competition for deals from private equity and debt.

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