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SCOTLAND M&A REVIEW
ANDERSON ANDERSON & BROWN LLP
MIKE BROWN - HEAD OF CORPORATE FINANCE
01224 625111
mike.brown@aab.co.uk
www.aab.co.uk
The outlook for Scottish M&A activity is far removed refinancing exercises. We also believe there will be
from that of a year ago. The boom in M&A activity tremendous opportunities for acquirers to purchase
in 2007 and early 2008, characterised by highly companies that have grown too fast or are too highly
leveraged transactions, racy multiples and competitive leveraged and find themselves in a restructuring or
processes, was aided and abetted by a change in insolvency situation through lack of cash flow, but
capital gains tax legislation and liquidity in the where the business fundamentals are still sound.
debt market. It is paramount that confidence is restored to
Our deal flow remained strong in 2008 as we companies and investors, and the medium term should
completed 50 transactions, but with a clear pattern see this happening as the banks work through their
emerging of a slowdown in activity towards the latter difficulties and businesses reposition themselves
part of the year and certainly our prediction is that strategically in this changing landscape.
M&A activity will bump along in the first half of this When the liquidity position improves we anticipate
year, picking up in the second half as trade players and greater visibility and confidence re-entering the M&A
private equity firms regroup, and confidence returns to market and although there can be little doubt that
the debt markets. 2009 is going to be a difficult year we are hopeful that
We will see an increase in activity of a different the Scottish M&A market can begin its recovery sooner
nature with more corporate restructuring and rather than later.
SCOTLAND’S TOP 15 DEALS (Jan 2007 – Dec 2008)
Position Deal Value Date Deal status Deal type Acquirer
(£m) completed
1 481.00 – Pending Minority stake unknown % –
2 478.80 12/01/2009 Completed Minority stake 4.584% –
3 361.36 – Unconditional Acquisition 100% Cable & Wireless Holdco Ltd
4 317.20 01/10/2008 Completed Acquisition inc from 67.1% to 100% Fortis SA/NV
5 301.07 07/04/2008 Completed Minority stake 1% –
6 254.36 – Announced Acquisition 100% Groupe Norbert Dentressangle SA
7 239.37 18/03/2009 Completed Minority stake 22% Centrica Resources (UK) Ltd
8 214.88 11/07/2007 Completed Minority stake 3% –
9 187.50 – Announced Acquisition 50% Bank of Scotland Joint Ventures
10 175.29 11/01/2008 Completed Minority stake 19.6% Babcock & Brown Ltd
11 171.00 30/04/2007 Completed Acquisition 100% Stockland UK Development Ltd
12 169.53 02/06/2008 Completed Acquisition 50% –
13 152.80 08/02/2008 Completed Minority stake 1% –
14 150.75 16/08/2007 Completed Minority stake 11.6% –
15 150.00 – Announced Minority stake 9% Institutional investors
Source: Zephyr
40 Mergers & Acquisitions
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