UK industry is gearing up for a post-referendum deal resurgence as the merger & acquisitions (M&A) market rebounds following Thursday’s historic vote for Scottish Independence, a law firm has claimed.
Pinsent Masons said that fundraising and M&A activity has been “on ice” pending the outcome of the vote as investors are thought to have stalled deal completion until the referendum concluded.
The law firm argued that the availability of quality Scottish assets and further clarity on the future of the Scottish political environment will likely lead to a significant return to deal making in the coming weeks.
Corporate partner at Pinsent Masons, Barry McCaig, said: “As the debate over independence ramped up there has undoubtedly been an impact on deal flow. In the short term we hope to see a spike in completions as transactions that were contingent upon the outcome of the vote are resumed, and certainly we are seeing a return to fundraising and M&A activity in the broader UK market which has probably not been reflected in Scotland just yet.”
The firm said that a few large scale deals had completed in recent weeks, including the recent £300 million private equity investment into new North Sea explorer Siccar Point Energy.
The company is led by former Centrica and Venture Production director Jonathan Roger.
But Pinsent Masons warned that Westminster and Holyrood must collaborate effectively to ensure deal activity increases.
“There are a number of Scottish assets with solid fundamentals, and their ability to attract international investment remains undiminished,” said Mr McCaig. “However, any residual uncertainty flowing from the commitment by Westminster to devolve further powers must be addressed swiftly and decisively if investors are to get the message that Scotland remains open for business.”